Peru’s Chancay Port: An Exclusivity Debate Threatens US-China Trade Tensions in South America

Chinese Port in Peru Encounters Unexpected Hurdle to Business Strategy

Peru’s Port Authority has faced a surprise challenge just months before the inauguration of its $1.3 billion port in Chancay. The regulator recently announced that Cosco Shipping’s Chancay port was granted exclusivity over the services offered on site, but now says that the facility should be open to other companies providing loading and unloading services.

Francisco Roman, a former senior attorney for DP World in Peru, expressed concerns about the change’s impact on any business plans related to the port. This move is particularly concerning given the Chancay port’s role in US-China trade tensions in South America. US officials have criticized Peru for allowing a state-owned Chinese company to undertake such a major infrastructure project while 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 issues of exclusivity, which is 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 its impact on investment climate in country.

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