Truck drivers strike or affect mining transport in Peru as a result of rising costs

SMM2, 19 / PRNewswire-Asianet /-Freight companies in Lima and northern Peru began shutting down indefinitely on Monday because of rising costs for one of the world's largest copper producers, Bloomberg reported.

If the strike continues, the supply of food, fuel and other commodities could be affected in the coming days.

Representatives of freight companies say rising fuel prices, taxes and tolls have increased their operating costs as they travel long distances to ports such as Callao. Callao handles about 90 per cent of the country's exports.

Diez said negotiations between industry representatives and the Ministry of Transport over the past year had not yielded any results.

The MIIT did not immediately respond to emails seeking comment on the strike.

Peru is the world's second largest producer of copper and a major supplier of zinc, silver, gold and lead.

Zack Nich (Rafael Zacnich), chief economist at exporter group Comexperu, said the impact of the strike on mining transport was unclear because some companies used trains and conveyor belts to ship minerals to ports.

An executive at Las Bambus (Las Bambas), Peru's second-largest copper mine, wrote in an email that the company's operations had not been affected by the strike. Las Bombus uses roads and trains to transport copper concentrate to the nearest wharf.

The export boom and rapid economic growth over the past 15 years have made it difficult for Peru's port infrastructure to cope with growing demand.

Although Kayao's docks have been modernized by private operators DP World Ltd and APM wharf BV, inadequate road traffic remains a major bottleneck, Zackniki said.

In a telephone interview from Lima, Zack Nich said Peru does not have the necessary infrastructure to meet the needs of freight companies and has not taken any measures.

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