By PortalPortuario Editorial Staff/Reuters Agency
@PortalPortuario
He Government of Peru seeks to avoid a process of international arbitration that the Chinese port operator could present Cosco Shipping due to a legal dispute over the exclusivity rights linked to the Chancay megaportwhich the company is building, according to a Peruvian official told Reuters.
Cosco sent a letter to Ministry of Economy of Peru in mid-April to begin a six-month negotiation process to reach an amicable resolution without having to resort to international arbitration, local media first reported. He Minister of Economy, José Aristasaid in an interview with local radio RPP that he received the letter but had not yet responded.
In March, the National Port Authority of Peru (APN) He argued that 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 $1.3 billion on the first phase of the site.
Since then, the government has promoted measures to allow private port operators to provide services exclusively. Arista said he was “sure” that Peru and Cosco would not have to go through an arbitration process, “we will reach an agreement sooner,” he stated.
Cosco’s office in Peru did not immediately respond to a Reuters request for comment. A free trade agreement between Peru and China, which has been in effect since 2009, protects investments and has allowed greater trade between the countries. “We believe that (the proposal) will soon be submitted to a second vote in Congress, which will calm things down,” Arista noted.
In Peru, measures must be voted on twice to be binding. Lawmakers approved the motion in a first vote earlier this month, although the second vote is still pending.
In April, Cosco Shipping confirmed that its investment in the Port of Chancay was underway and that he still hoped to inaugurate the first part of the port in November of this year for the summit of leaders of the Asia-Pacific Economic Cooperation Forum (APEC).
