Page 13 - ENGLISH MONTT GROUP, MAYO 2024

port of CHanCay
pERÚ
DiSpute betWeen
tHe ConSortiuM anD tHe State
The Attorney General’s Office of the Peruvian Ministry of Transport and Communications filed a lawsuit against the Chinese consortium, generating uncertainty about the port´s future development.
This alleges the nullity of an agreement that granted Cosco Shipping Ports Chancay Perú exclusivity in the exploitation of essential services in the port infrastructure. According to judicial sources, the legal action is based on supposed infringements of the principle of administrative legality and free competition, in addition to claim transgretion of the National Port System Law and its Regulations. According to the port entity, the exclusivity granted to the consortium affects several aspects, including administrative legality, public interest and legal certainty, among others. “There is no legal framework that empowers me to grant exclusivity,” said Milagros Miguel, head of the APN advisory unit, during a session of the Chancay Project Special Commission of the Peruvian Congress. “If we start with a breach of our rule, what legal security, what message are we giving to other investments? A country that does not comply with its own law, what kind of country is it?” Miguel said.
In response, the Chinese state company sent a letter to the Peruvian Ministry of Economy about the conditions under which the port terminal it is building in that country would operate. The communication activates a dispute settlement mechanism within the framework of the North American Free Trade Agreement, Nafta and attempts a friendly solution to avoid international arbitration.
The conflict refers to the permission for that company to exclusively operate port infrastructure services.
VIDEO: REPORT ON THE CONSTRUCTION OF THE PORT
In the final stretch is the first phase of the Chancay Multipurpose Port Terminal, located 80 km north of Lima, in Huaral, run by the Chinese state company Cosco Shipping – the largest port operator in the world – and the Peruvian entity Volcán, which owns 40 percent of the shares of the Asian giant.
As of today, the work has a general progress of 70 percent, a figure that includes the four initial docks of a total of 12 that this project has, valued at US$3.6 billion. It will generate 4.5 billion dollars in annual income, which impacts 1.8% of GDP.
It will be the most important and modern port in Latin America, equipped with the latest in technology, capable of receiving ships of 9,000 tons and moving around 1.5 million containers. A true port hub, which will redistribute the cargo of the countries of Chile, Ecuador and Colombia and Brazil, decongesting the access roads to the port of Callao.
The creation of this port will allow us to reach Asia, be it China, Korea or Japan in around 23 days and not in the 30 or even 40 days that current routes take. Beijing and Lima hope Chancay will be a new regional export hub, both for copper-rich Peru, as well as for farmers in western Brazil, whose shipments of soybeans currently travel through the Panama Canal.
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