Chancay Port Exclusivity Controversy: Updates on the APN and Cosco Shipping Ports

2024-04-18 14:34:24

He Chancay port came to the fore in recent weeks, not only because its inauguration is getting closer (November 2024), but because the Attorney General’s Office Ministry of Transport and Communications (MTC), at the request of the National Port Authority (APN), demanded the annulment of the exclusivity of essential services granted in 2021 to Cosco Shipping Ports. The detail in this case is that the APN itself was the entity that gave the green light to said exclusivity and three years later asked to go back, arguing that it did not have the power to make a decision like this.

The central point in this topic is that for the APN The National Port System Law (LSPN) does not explicitly say that exclusivity in services can be granted to a private investment in ports. This situation surprised Cosco Shipping Ports, which in different statements stressed that they complied with everything that was requested of them. This point is key, since we must remember that the port of Chancay is not a concession, but an investment.

In this context, two bills were presented to the Transportation Commission of the Congress of the Republic to change this situation, which were basically supported by the MTC minister, Raúl Pérez Reyes. Yesterday, Wednesday, the opinion received approval in the Plenary of Parliament.

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The decision was adopted by 72 votes in favor, 32 against and four abstentions. The proposal will be subject to a second vote after seven calendar days.

The most important change falls on article 9. Thus, it is proposed that: “The owner of a private port for public use that has a port authorization can provide port services exclusively. Once the port authorization has been granted, the competent Port Authority grants exclusivity in the provision of essential port services requested by the owner of the private port together with the port license. “This exclusivity is automatically approved.”

Does this imply that Cosco Shipping Ports retains the exclusivity received in 2021? The Minister of Transportation and Communications, Raúl Pérez Reyes, commented at the beginning of this month, in the Transportation Commission of Congress, that the changes to the LSPN would be the way out so that Cosco Shipping Ports does not lose its exclusivity. However, it must be remembered that the APN had previously mentioned that, if this is approved, Cosco would have to request exclusivity for the port of Chancay again.

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Milagros Miguel, head of the APN Legal Advisory unit, specified at the beginning of April that the changes would be aimed at establishing that Cosco Shipping Ports can request again the exclusivity between the authorization and the port license.

“We are aware that we have deadlines against us (…) The window that we have given is that they can request it between the authorization and the port licensethey still do not have a license to operate so it is still within the sale which, according to the project, would allow it to opt for exclusivity of services”, he commented.