Chancay port development faces challenges

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The development of Chancay port, which is located 70km to the north Lima, Peru, by COSCO Shipping, a state-run business that is based in China and has faced a myriad of difficulties. The plan, which aims to transform a fishing community into a significant port that is similar to Shanghai and Beijing, has been hampered by controversy, including landslides as well as politics from Washington.

The current issue concerns an “administrative mistake” that gave COSCO exclusive operational rights which led Peru’s port authority appeal to the courts for judicial review of this ruling. COSCO has begun a 6-month negotiations with Peru’s economic ministry in order to stay clear of international arbitration.

The total cost of investment is $3.6bn, $1.3bn has already been spent on the first section of the port’s development. In the year 2019 COSCO purchased a 60% share in Terminales Portuarios Chancay (TPCH) from Volcan Compania Minera, a subsidiary of Glencore. The construction of the Chancay port is predicted to drastically reduce the time for shipping between Peru and Asia between 45 and 10 days, and will increase Brazil’s exports using along the Southern Interoceanic Highway.

Source: datamarnews.com

Photo Source: YouTube.com

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