Peru to 'correct error' that gave China's Cosco exclusivity in megaport
Business
Awards a $405m construction contract for another port to a second Chinese company, Jinzhao
LIMA (Reuters) – Peru's port authority said it hopes to fix an "administrative error" that gave China's Cosco Shipping 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.
An index of semiconductors was also up sharply for the week amid continued optimism over artificial intelligence, but Keith Buchanan, senior portfolio manager at Globolt Investments.
On Friday, Peru's government awarded a $405 million construction contract for another port to a second Chinese company, Jinzhao.
