Singapore's PSA splits from JV, prepared to build Mumbai terminal alone
2012 04 21
- Details
SINGAPORE's PSA International has split from its joint venture partner, India's ABG Ports, delaying the start of Mumbai's fourth container terminal at Jawaharlal Nehru Port (JNPT) for reasons unexplained by the parties involved.
The Port of Singapore Authority (PSA) International and India's ABG Ports were awarded the INR67 billion (US$1.2 billion) project last August. PSA says it is prepared to build alone if the Jawaharlal Nehru Port Trust approves, which is expected to be decided after consultations with the Indian Shipping Ministry, reports the Hindu daily.
An official told the Hindu that there is no legal obstacle in PSA being the sole operator. The contract was awarded to the pair because of PSA's financial strength.
Earlier this year, the signing ceremony for the contract was cancelled at the eleventh hour following PSA's refusal to pay a INR500 million stamp duty to the state government, with the Singaporean company insisting that JNPT pay instead. This dispute has since been referred to adjudication.
At full-build out, the terminal, India's biggest, would more than double JN Port's capacity, adding 4.8 million TEU. All-India port container volume hit 9.7 million TEU in 2011, a figure that is expected to reach 14 million TEU within two years.
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