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Peru seeks to avoid arbitration over Chinese-built megaport

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In March, Peru’s port authority said 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 US$1.3 billion on the first stage of the site.

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Gateway to Asia: China builds port in Peru for faster transport of goods to and from South America

Gateway to Asia: China builds port in Peru for faster transport of goods to and from South America

Since then, the government has pushed measures to allow private port operators to exclusively provide services.

Arista said he was “sure” that Peru and Cosco would not have to go through arbitration proceedings.

“We will reach an agreement before,” he said.

Cosco’s office in Peru did not immediately respond to a request for comment.

A free-trade agreement between Peru and China, which has been in effect since 2009, protects investments and has allowed increased trade between the countries.

“Our thinking is that [the proposition] will soon be up for a second vote in Congress, which will calm the mood,” Arista said.

In Peru, measures must be voted on twice to become binding. Lawmakers passed the motion in a first vote earlier this month, though the second vote is still pending.

This month, Cosco Shipping confirmed that its investment in the Chancay port was continuing and that it still expected to inaugurate the first part of the port in November for the Asia-Pacific Economic Cooperation (Apec) leaders’ summit.

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