The Chancay megaport project is more than 80% complete. Although there is certainty that it will open next November, there is still no certainty as to whether it will apply a price list for its services at the free choice of its operator Cosco Shipping Ports, as expected, or whether it will have to adhere to state-regulated rates.
This can be concluded from information from various sources consulted by Gestión. They point out that, although the company will soon define the prices it will apply, there are still aspects to be determined between the public entities involved to establish whether it is appropriate to apply a regulation, so that the operation in Chancay does not reduce Callao’s competitiveness.
Ositran’s position
Verónica Zambrano, president of the Supervisory Body for Investment in Public Transport Infrastructure, Ositráninformed this newspaper last week that, up to that moment, the National Institute for the Defense of Competition and the Protection of Intellectual Property, Indecopi, had not given an opinion regarding the request submitted by the regulator to determine whether there will be competition between the two ports mentioned.
The official stressed that, The intervention of Ositrán will depend on the response provided by Indecopi regarding whether or not such competition is generated. (to initiate a process of setting rates for services at the port of Chancay).
Besides, revealed that the National Port Authority (APN) has requested information from Ositrán to generate a study that would be carried out by said port authority, to establish whether the aforementioned competence exists. However, the body that he presides has decided not to participate in this document.
He doesn’t want to be judge and jury
“We do not want to enter into that procedure, since the intervention of Ositrán will depend on the response that Indecopi provides on whether there is competition or not. As we are being questioned in some way by Cosco Shipping Ports, we do not want to be both judge and party, and not be the ones to carry out the study,” he explained to Gestión.
Months ago, A discussion arose because the APN gave the green light years ago to the exclusivity of essential services to Cosco Shipping Ports, But this year it said it was an “administrative error” because it had no legal authority to grant such exclusivity.
This led the Congress of the Republic to pass a law -proposed by the Executive Branch- that settled the dispute, recognizing that it had such exclusivity and also led the APN to desist from continuing to bring this case before the Judiciary, to which it had initially appealed.
Nevertheless, Ositrán maintained its request that Indecopi conduct a study to determine whether Chancay would generate competition for the operators of the port of Callao (AMP Terminals at the North Pier, and DPW at the South Pier) to proceed with regulating the services of the first.
What does Indecopi say?
Consulted on the subject, Indecopi, through its National Directorate of Research and Promotion of Free Competition, informed Gestión that it has, in fact, received the aforementioned request from Ositrán.
But, He adds that -in a meeting held with that organization- Indecopi has requested that it provide information on the characteristics and conditions of the markets involved, to be able to speak out on this matter.
He explained that his request for such information is based on Article No. 59 of the Regulations of the National Port System Law.which specifies that when there are no conditions of competition for the use of public port assets, and Ositrán or the APN want to establish a tariff regime, Indecopi is the entity in charge of determining whether or not there are actually conditions of competition in the provision of the service.
He added that, once Ositrán presents the information requested by Indecopi, in accordance with the provisions of article 59 of the aforementioned regulation, the latter institution will have a period of 70 working days to make a decision.
“At this stage, there is still not enough information to allow us to make a statement on the competitive conditions of the services that will be provided at the Chancay Multipurpose Port Terminal and those offered at other ports,” Indecopi said.
On the other hand, Management learned from sources in the Executive Branch that, although the president of Ositrán indicated that the APN proposed to carry out a study on the competition between Callao and Chancayin fact, the aforementioned port authority is still evaluating whether or not it will carry out such a study.
Company to set prices this month
Alberto Ego-Aguirre, President of the Maritime, Port and Customs Affairs Commission of the Lima Chamber of Commerce, CCL, He said that Cosco Shipping would announce the price list that it will apply to its services at the port of Chancay in the next 15 to 20 days.
Last May, company executives had already informed Gestión that it would publish its price list (defined by the company) in the second half of this year.
According to Ego-Aguirre, if a regulation is established to determine rates for services at the port of Chancay, Its competitiveness would be affected, since it is a purely private port, which is not subject to a concession, but is governed by supply and demand.
Furthermore, the specialist suggested that, in general, all regulation (of tariffs for concessioned ports) should be withdrawn. so that there is free competition between port operators and that this competition results (in better prices) in favor of users.
“Chancay aims to be a port that is not only modern, but also with cutting-edge technology and very good rates. What does (Ositrán) intend to regulate so that rates tend to rise?he said.
In turn, Rafael del Campo, president of Conudfi (council that brings together several associations of business owners of the cargo) He indicated that the results of the Indecopi investigation must be awaited to determine whether there will be competition between Callao and Chancay, and whether regulation is necessary.
Best freight rates
However, Del Campo, also an expert in international logistics, said that, on a personal level, he believes that the less regulation there is, the market is going to be much better managed.
He considered that Chancay, by specializing in traffic to China, will apply better maritime freight rates and, therefore,better costs in servicing ships (in that port) as well as better logistics costs and infrastructure and access.
“They themselves (Cosco Shipping) will have to regulate their own internal costs. “I think more regulation is unnecessary,” he noted.
He also asked to remember that Chancay (by projecting itself as a regional hub port) seeks to attract not only Peruvian cargo, but also that of other countries and that, Therefore, it could not be expected to charge higher tariffs. Moreover, he noted, it has already invested US$1.5 billion in its first phase and plans to invest the same in its second phase.
