Peru to 'correct error' that gave Cosco exclusivity in megaport

COSCO SHIPPING Ports

23/03/2024 14:10

LIMA, March 23 (Reuters) - Peru's port authority said it
hopes to fix an "administrative error" that gave China's Cosco
Shipping  1199.HK  exclusivity over operations at the new
Chancay megaport. 
    The National Port Authority (APN) said in a statement late
on Friday that it has requested the annulment of its own
decision in February 2021 that granted Cosco exclusivity,
through a judicial process.
    The authority said the legal process would not affect the
port's construction in northern Peru and it still plans to begin
operations at the end of the year.
    "The construction process and the future operation of the
Chancay Port Terminal will not be affected," the statement said.
"The APN will continue to work together with the company Cosco
Shipping Ports so that operations begin on the established
date."
    The APN said it does not have the power to grant exclusivity
and wants to "correct an error in an administrative act." 
    Representatives in Peru for Cosco Shipping were not
immediately available for comment.
    The Chancay port is at least 70% complete and Cosco Shipping
hopes to inaugurate it in November during the Asia-Pacific
Economic Cooperation (APEC) leaders' summit, with Chinese
President Xi Jinping in attendance. 
    The $3.5 billion megaport hopes to become a hub in the South
American Pacific, but has posed a challenge for the United
States and Europe as they seek to stop the Chinese rise in Latin
America.
    On Friday, Peru's government awarded a $405 million
construction contract for another port to a second Chinese
company, Jinzhao.

 (Marco Aquino Report; Writing by Alexander Villegas; Editing by
Daniel Wallis)
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