Cosco Shipping, the Chinese port operator, is considering legal action in Peru following a decision by the local regulatory agency to impose price controls on its Chancay megaport. In a statement released on Friday, Cosco expressed its disappointment, asserting that it provides competitive market conditions at Chancay, contrary to the findings of Peru’s consumer protections agency, INDECOPI.
The company highlighted that Peru’s own port authority had previously acknowledged the competitiveness of the Chancay port. On Thursday, the transportation regulatory body in Peru announced that it would regulate rates at the port after the market watchdog concluded that the terminal lacked sufficient competition.
Chancay, situated north of Lima, has recently commenced operations with direct shipping routes to and from Asia, able to accommodate some of the largest vessels operating on South America’s Pacific coast. The first phase of the port, developed by Cosco as part of a $1.4 billion investment, was inaugurated in November during the Asia-Pacific Economic Cooperation (APEC) summit held in Lima.
This significant event was attended by Peruvian President Dina Boluarte and Chinese President Xi Jinping. As the situation unfolds, Cosco’s potential legal action indicates the ongoing tension between foreign investment and local regulatory frameworks in Peru.
The company has emphasized its commitment to providing competitive services but now faces challenges due to the regulatory stance taken by Peruvian authorities, which may affect the operational dynamics of the Chancay megaport and its future profitability.