In a surprising twist, Peru’s $1.3 billion port in Chancay, which is set to open later this year, is facing a challenge just months before its inauguration. The port authority has recently announced that Cosco Shipping’s Chancay port was mistakenly granted exclusivity over the services offered on site. However, the regulator now says that the facility should be open to other companies providing services such as loading and unloading shipping containers.
This change has raised concerns among business leaders who had plans related to the port. Francisco Roman, a former senior attorney for DP World in Peru, expressed his worries about how this move could impact any future investments in the region. The Chancay port, which was scheduled to open during the Asia-Pacific Economic Cooperation conference in November, has been a source of contention between US and Chinese officials in South America. While Peruvian authorities have defended their decision to allow state-owned Chinese firms to undertake major infrastructure projects, US officials have criticized them for doing so.
Despite this setback, Transportation and Communications Minister Raul Perez Reyes has confirmed that the Chancay port will still be inaugurated in November. The government is working to change regulations to address the issue of exclusivity, which is a common practice in Peru’s port operations. With plans to create a direct trade route between Chancay and Shanghai, the port has the potential to transform South American trade in the future. Cosco Shipping has criticized Peru’s challenge to its exclusivity, citing it as a key factor in their decision to invest in the port and expressing concerns about the impact on investment climate in the country.
