Peru Amends Law Allowing Cosco Shipping to Retain Exclusive Rights to Operate Chancay Port

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Peruvian President Dina Boluarte

Peru has amended its National Port System Law, empowering the National Port Authority to grant exclusive operational rights to private companies. The move means the dispute involving Chinese port operator Cosco Shipping Ports’ exclusive rights to operate Chancay Port terminal will be resolved quickly.

Peruvian President Dina Boluarte, who on Wednesday signed the amendment to be effective from June 8, emphasized the importance of these changes in a speech, citing Cosco Shipping’s exclusive rights to operate Peru’s Chancay Port as a positive impact.

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Peru amended its National Port System Law to give exclusive operational rights to private companies, resolving Cosco Shipping Ports' dispute over Chancay Port.
The Chancay Port project is expected to generate $4.5 billion annually, create 8,550 jobs, and enhance trade between Peru and Shanghai.
Peruvian President Dina Boluarte will visit China to strengthen Peru-China relations, just months before the APEC summit in Lima, which President Xi Jinping is invited to attend.

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Who’s Who

Cosco Shipping Ports: Cosco Shipping Ports, a Chinese port operator, acquired a 60% stake in Peru's Chancay Port terminal for $225 million in 2019. Its investment has grown to $3.5 billion. Initially awarded exclusive operational rights in 2021, a dispute arose due to legal ambiguities. Peruvian amendments now grant those rights. The project is vital, generating $4.5 billion annually and creating 8,550 jobs. Peruvian President to meet Cosco executives in China.

Volcan Cia Minera: Volcan Cia Minera is a mining company that partly owns Chancay Port in Peru. The port will revitalize South American trade by creating a direct line from Peru’s Pacific coast to Shanghai, enhancing economic activity in the region.

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What Happened When

2019：: Cosco acquired a 60% stake in the Chancay port terminal for $225 million.

2021：: Peru’s port authority awarded Cosco the exclusive rights to run the terminal.

Last month：: Cosco sent a letter to Peru’s Ministry of Economy and Finance requesting a six-month negotiation to amicably resolve the dispute.

Wednesday：: Peruvian President Dina Boluarte signed the amendment to be effective from June 8, 2024.

March 2024：: Peru’s port authority claimed the deal had been an 'administrative error' and requested a judge to void the deal.

May 30, 2024：: The amendments to the law were passed by the Peruvian Congress.

By June 8, 2024：: The amendment signed by Peruvian President Dina Boluarte becomes effective.

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