Monday, July 7, 2014

ICTSI ends deal to operate port in Tamil Nadu

Source: http://www.gmanetwork.com/news/story/369038/economy/companies/ictsi-ends-deal-to-operate-port-in-tamil-nadu

By DANESSA O. RIVERA, GMA News July 7, 2014:

International Container Terminal Services Inc. (ICTSI) of port magnate Enrique Razon has pulled the plug on a contract to operate a container terminal in India, citing the deal as not beneficial for the company.
In a disclosure to the Philippine Stock Exchange Monday (July 7), ICTSI said subsidiaries ICTSI Ltd. and ICTS (India) Pte. Ltd. have signed a termination agreement with L&T Shipbuilding Ltd. (LTSB) canceling ICTSI’s container port agreement to manage and operate the Kattupalli Container Terminal (KCT) in Tamil Nadu, India.
ICTSI will be reimbursed for the license fee it paid to operate the terminal.
Kattupalli port is ICTSI's first port venture in Indian, with the contract with LTSB to operate facility signed in 2011.
LTSB is a joint venture between Larsen & Toubro Limited (L&T) and Tamil Nadu Industrial Development Corporation (TIDCO). ICTSI said the two parties came up with the mutual decision after lengthy discussions and thorough consideration.

"Both concluded that the existing contract is not beneficial to either party in its current form," the disclosure read.
"The cancellation of this particular contract has no effect or influence on any of ICTSI’s other operations," it added.
Despite this development, ICTSI said it continues to actively search for business opportunities in India.

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