The construction of Chancay port, 70 km north of Lima, Peru, by COSCO Shipping, a state-run company from China, has encountered multiple challenges. The project, aimed at transforming a former fishing village into a major port akin to Shanghai, has been marked by controversies including landslides and political interference from Washington.
The latest issue involves an "administrative error" that granted COSCO exclusive operational rights, leading Peru's port authority to seek judicial intervention to annul this decision. COSCO has initiated a six-month negotiation with Peru's economy ministry to avoid international arbitration.
With a total investment of $3.6bn, $1.3bn has already been spent on the initial phase of the port's construction. In 2019, COSCO acquired a 60% stake in Terminales Portuarios Chancay (TPCH) from Volcan Compañía Minera, a subsidiary of Glencore. The completion of Chancay port is expected to significantly reduce shipping times between Peru and Asia from 45 to 10 days and benefit Brazil's exports via the Southern Interoceanic Highway.
Source: datamarnews.com
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