Photo: Wikimedia Commons.
The construction of the megaport of Chancay in Peru, led by the Chinese firm COSCO Shipping, has been affected by a legal demand from Peruvian port authorities to annul the exclusivity agreement in place for the exploitation of essential services in the port.
COSCO Shipping stated that this action would impact the security and legal stability of its investments in the project, which amount to US $1.3 billion in the first stage alone. The firm highlighted that, although the port is set to be a valued public utility, it is a private infrastructure in which the shareholder companies fully invest, mainly COSCO Shipping with 60% and the Swiss multinational Glencore with 40%.
The National Port Authority of Peru requested the annulment of the exclusivity agreement, arguing the need to correct an administrative error, ensuring that this would not affect the construction or future operation of the port, planned for the end of the year.
Chancay is an important Chinese infrastructure project in Latin America, seeking to create a direct route to China and reduce the current maritime journey of more than 45 days by up to just 10 days. In addition, its projected depth of 20 meters would provide a competitive advantage by allowing it to receive fully loaded ships carrying around 18,000 containers, a capacity that other ports in South America do not have.
COSCO Shipping aims to have the port of Chancay begin operating by the end of 2024, coinciding with the Asia-Pacific Economic Cooperation Forum summit that will take place in Peru in May this year.
This infrastructure project not only represents a significant investment for China in the region, but also aims to improve maritime connectivity and international trade, which could have a positive impact on the Peruvian economy and the region as a whole. However, the current legal dispute raises uncertainties about the future development of the project and the relationship between the parties involved.
Main source:
Perú busca anular acuerdo de exclusividad con empresa china que construye puerto
(2024, marzo 26).
https://www.diariolasamericas.com/mundo/peru-busca-anular-acuerdo-exclusividad-empresa-china-que-construye-puerto-n5353927
Other related sources:
El Nuevo Herald, (26 de marzo, 2024)
https://www.elnuevoherald.com/noticias/america-latina/article287110605.html