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China’s $1.3 Billion Port in Peru Faces New Regulatory Challenges from Government and Private Companies

Chinese Port in Peru Encounters Unexpected Hurdle to Business Strategy

China’s $1.3 Billion Port in Peru Faces New Regulatory Challenges from Government and Private Companies

Peru’s port authority has made a surprising announcement just months before the inauguration of China’s $1.3 billion port in the country. The regulator has ruled that Cosco Shipping’s Chancay port, which was previously granted exclusivity over services offered on site, must now be open to other companies providing services such as loading and unloading shipping containers.

Francisco Roman, a former senior attorney for DP World in Peru, expressed concerns about this change and its potential impact on 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. 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 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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