Peru seeks to avoid arbitration over Chinese-built megaport
- Dispute erupts over Peru port authority ‘error’ that gave Cosco Shipping exclusivity over port operations
- Chinese-backed port in Peru aims to offer a faster, alternative route to China from South America
Economy Minister Jose Arista said in an interview with local radio station RPP that he had received the letter but not yet replied.
In March, Peru’s port authority said an “administrative error” had given Cosco Shipping exclusivity over operations at the Chancay megaport and asked a judge to annul the decision. Cosco is expected to spend US$1.3 billion on the first stage of the site.
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Gateway to Asia: China builds port in Peru for faster transport of goods to and from South America
Since then, the government has pushed measures to allow private port operators to exclusively provide services.
Arista said he was “sure” that Peru and Cosco would not have to go through arbitration proceedings.
“We will reach an agreement before,” he said.
Cosco’s office in Peru did not immediately respond to a request for comment.
“Our thinking is that [the proposition] will soon be up for a second vote in Congress, which will calm the mood,” Arista said.
In Peru, measures must be voted on twice to become binding. Lawmakers passed the motion in a first vote earlier this month, though the second vote is still pending.
This month, Cosco Shipping confirmed that its investment in the Chancay port was continuing and that it still expected to inaugurate the first part of the port in November for the Asia-Pacific Economic Cooperation (Apec) leaders’ summit.
