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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
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The Peruvian government is looking to avoid an international arbitration process that could be filed by Chinese port operator Cosco Shipping over a legal dispute regarding exclusivity rights to a massive facility being built by the firm, an official said on Monday.
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Cosco sent a letter to Peru’s economy ministry in mid-April to start a six-month negotiation process to reach an amicable resolution without having to resort to international arbitration, local media first reported on Monday.
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
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.
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