China's Cosco Shipping evaluating impact of Peru's lawsuit on megaport development (updated)

COSCO SHIPPING Ports

26/03/2024 16:31

(Adds comments by Cosco Shipping, background on the port)
       LIMA, March 26 (Reuters) - China's Cosco Shipping
 1199.HK  is evaluating the impact of a move by Peru's
government to annul the exclusivity it holds over operations at
the new Chancay megaport.
     Peru awarded exclusivity to Cosco Shipping to operate the
port in 2021, but last week said it was an "administrative
error" and requested a judicial process to annul the decision. 
    The Chinese company said in a statement late on Monday the
push affects the "security and legal stability of investments."
    The exclusivity granted was a "relevant aspect" for the
company to invest $1.3 billion to develop the first stage of the
port, the statement said. 
    The $3.5 billion deep water port aims to become a hub in the
South American Pacific. It is at least 70% complete, and Cosco
Shipping hopes to inaugurate it in November.
    Beijing and Lima hope Chancay will become a regional hub,
both for copper exports from the Andean nation as well as soy
from western Brazil, which currently travels through the Panama
Canal or skirts the Atlantic before reaching China.

 (Reporting by Marco Aquino; Writing by Valentine Hilaire;
Editing by Alexander Villegas and Costas Pitas)
 ((Valentine.Hilaire@thomsonreuters.com;))