Peru In Dispute Over Port Being Built By China
The government of Peru appears to be back-tracking on an agreement concerning the management of the under-construction deepwater port of Chancay, near its capital Lima.
The “mega port” is currently being built by the Chinese state-owned shipping and logistics company – Cosco Shipping. However, in March, Peru’s port authority stated that an “administrative error” had provided Cosco with exclusivity over operations, which they were now seeking to be annulled by a judge.
The authority claims that it did not have the legal authority to grant Cosco this exclusivity, For its part, Cosco is understood to have already spent up to $1.3 billion on the first of three development stages which is currently 70% complete.
The Hong Kong based company seems likely to defend its legal rights to be the exclusive operator under the terms that were agreed at the beginning of their investment. However, they have sent a letter to Peru’s economy ministry starting a six-month negotiation process, in order to reach an amicable resolution.
A free-trade agreement has been in effect between Peru and China since 2009, which has protected investments and helped increased trade between the two countries.
Although the dispute remains, Cosco Shipping have confirmed that its investment in the port is on-going and that the first stage of the port is still scheduled to complete in November 2024.
