Peru’s Chancay Port Faces Unexpected Challenge to Exclusivity as Major Investment Deadline Approaches

Chinese Port in Peru Encounters Unexpected Hurdle to Business Strategy

Peru’s port authority recently announced that China’s $1.3 billion port in Chancay was mistakenly granted exclusivity over the services offered on site. This revelation has sparked surprise challenges for the facility, just months before its inauguration later this year. Francisco Roman, a former senior attorney for DP World in Peru, expressed concerns that this change would significantly impact any business plans related to the port.

The Chancay port, scheduled to open in November during the Asia-Pacific Economic Cooperation conference, has been a point of contention in US-China trade tensions in South America. The facility was undertaken by a state-owned Chinese company and has drawn criticism from US officials who have accused Peru of allowing foreign investment from China at the expense of domestic firms. However, Peruvian authorities have defended the decision by pointing out the lack of similar investments from US firms in the region.

Despite this setback, Transportation and Communications Minister Raul Perez Reyes 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 the investment climate in the country.

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