(Bloomberg) -- Peru and a Chinese state-owned company resolved a dispute over the business model of a massive $1.3 billion port ahead of a meeting between the presidents of both countries this week. 

China’s Cosco Shipping has been building the Chancay port near Lima expecting to be its exclusive operator when it opens in November. But government lawyers sued to challenge that status earlier this year, saying the facility should be available to other companies offering services such as loading and unloading shipping containers. 

The surprise lawsuit was criticized by the company, Chinese lenders and Peruvian industry groups that argued virtually all other ports in the South American country have exclusive operators. President Dina Boluarte’s government now says the issue has been resolved and the lawsuit will be dropped.

“Their exclusivity is now a fact and the issue of the lawsuit is history,” Juan Carlos Paz, head of Peru’s port authority, said in an interview. Government lawyers formally asked a judge to dismiss the civil lawsuit on Monday, he added. 

A Chancay representative concurred, saying the issue had been resolved in a way that was favorable to the port and to the broader shipping industry. 

Boluarte, who is visiting China, has meetings scheduled with Cosco officials on Thursday and with President Xi Jinping on Friday. 

The Chancay port is expected to transform trade between South America and Asia by slashing travel times for cargo ships. The facility, which has become a lightning rod for US-China tensions in the region, is due to be inaugurated when Peru hosts the Asia-Pacific Economic Cooperation leaders’ summit later this year.

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