PERU and Chinese state-owned cosco Shipping have resolved a dispute over the US$3.6 billion Chancay port development which could be transformative for cargo trade between Asia and Peru.
Peru and COSCO Shipping were caught in a spat for exclusivity rights which, according to Peru's port authority, were given to Cosco by an 'administrative error', reports Singapore's Splash 247.
On the other hand, COSCO Shipping has been building the port with expectations of becoming its exclusive operator when it opens in November if everything goes on schedule.
A judge was asked to annul the decision because the government believes that the facility should be available to other companies offering services such as loading and unloading shipping containers.
The sides then started a negotiation process to reach an amicable resolution without resorting to international arbitration.
The lawsuit was challenged by COSCO and even Peruvian industry groups which claimed that almost all other ports in Peru had exclusive operators.
The government of current Peru president Dina Boluarte has now stated that the issue has been resolved.
The port authority claimed that COSCO's exclusivity was no longer under challenge but had become a fact. The judge was also asked to dismiss the lawsuit.
Of the $3.6 billion cost of construction, $1.3 billion has already been invested in the initial phase.
In 2019, COSCO purchased 60 per cent of the shares in Terminales Portuarios Chancay from Volcan Compania Minera, a subsidiary of Swiss firm Glencore, thereby buying into the development of the Chancay port.
When the port is completed, cargo will be able to reach Asia from Peru in 10 days, rather than 45 at present.
Brazil is also expected to be a beneficiary of the port, which will provide quicker access to Asian markets for the country's exports.
SeaNews Turkey
Peru and COSCO Shipping were caught in a spat for exclusivity rights which, according to Peru's port authority, were given to Cosco by an 'administrative error', reports Singapore's Splash 247.
On the other hand, COSCO Shipping has been building the port with expectations of becoming its exclusive operator when it opens in November if everything goes on schedule.
A judge was asked to annul the decision because the government believes that the facility should be available to other companies offering services such as loading and unloading shipping containers.
The sides then started a negotiation process to reach an amicable resolution without resorting to international arbitration.
The lawsuit was challenged by COSCO and even Peruvian industry groups which claimed that almost all other ports in Peru had exclusive operators.
The government of current Peru president Dina Boluarte has now stated that the issue has been resolved.
The port authority claimed that COSCO's exclusivity was no longer under challenge but had become a fact. The judge was also asked to dismiss the lawsuit.
Of the $3.6 billion cost of construction, $1.3 billion has already been invested in the initial phase.
In 2019, COSCO purchased 60 per cent of the shares in Terminales Portuarios Chancay from Volcan Compania Minera, a subsidiary of Swiss firm Glencore, thereby buying into the development of the Chancay port.
When the port is completed, cargo will be able to reach Asia from Peru in 10 days, rather than 45 at present.
Brazil is also expected to be a beneficiary of the port, which will provide quicker access to Asian markets for the country's exports.
SeaNews Turkey
