Chancay Port Terminal’s construction unfazed by exclusivity rights rollback, ANP says

Despite the recent revoking of exclusivity rights granted to Hong Kong-based port operator Cosco Shipping Ports over operations at the New Chancay Megaport by the National Port Authority (APN) of Peru, there will be no delays in the construction and future operation of the Chancay Port Terminal, the port authority reassured.

Namely, APN has taken steps to revoke the exclusivity rights previously granted to Cosco, saying that the decision was prompted by the entity’s lack of legal authority to grant such privileges.

As explained, the annulment of article 2 of the Board of Directors Agreement Resolution No. 008-2021-APN-DIR was sought to rectify an error in administrative proceedings, rather than to hinder the development of the Chancay Port Terminal.

However, the decision has sparked concerns about the future of the project.

In a statement addressing the media reports, the APN emphasized that the ongoing construction process and the subsequent operation of the Chancay Port Terminal will proceed as planned. Despite the reversal of exclusivity rights, the APN affirmed its commitment to collaborating with Cosco Shipping Ports to ensure that operations commence as scheduled.

The Peruvian arm of the company cited exclusivity as a relevant factor in the company’s decision to invest in the port, as reported by the Financial Times, adding that it was evaluating the impact of the measure on the project’s development.

In 2019, Cosco Shipping Ports and Peruvian mining company Volcan forged a landmark deal to spearhead the development of the Chancay Port Terminal, committing a staggering $3.5 billion towards its construction.

At the heart of this ambitious undertaking are two specialized terminals. The container terminal, boasting 11 berths, is set to streamline the handling of containerized cargo, while a second terminal, dedicated to bulk cargo, general cargo, and rolling cargo, will feature four berths.

The Chancay Multipurpose Port Terminal consists of two key components: the Chancay Multipurpose Port Terminal and the Chancay Logistics Activities Zone. Cosco Shipping has committed to investing $1.21 billion in the initial phase of the project.

The Port of Chancay, situated 58 km north of Lima, boasts a natural deep-water harbor with a maximum depth of 16 meters, making it suitable for accommodating mega vessels.

The Chancay port project has reached a completion rate of at least 70%, according to Cosco Shipping. The company aims to inaugurate the port in November, coinciding with the Asia-Pacific Economic Cooperation (APEC) leaders’ summit, which will be attended by Chinese President Xi Jinping.

The megaport aspires to establish itself as a key hub in the South American Pacific region. However, its development has raised concerns among the United States and Europe, who are wary of China’s increasing influence in Latin America.