A consortium of ABG Infralogistics and PSA International, which operates a container terminal at the Kandla port in Gujarat, agreed to transfer the terminal assets to the port authority, reports indicate.
Consequently, a 30-year concession agreement signed between the the port authority and ABG Kandla Container Terminal in June 2006 for developing and operating the terminal stands cancelled.
ABG Kandla Container Terminal is the consortium which runs the terminal which has the capacity to handle 600,000 standard containers a year.
ABG Infralogistics holds 51 percent stake in the consortium, while the balance is owned by SingaporeÂ’s PSA International, the worldÂ’s biggest container port operator. PSA is fully-owned by Temasek Holdings, the sovereign wealth fund of Singapore.
Following this, Kandla port would take over and run the terminal from April 1. This is said to be the first such incident involving a public-private partnership (PPP) project in ports.
Further, it is learnt that the event may prevent ABG Infralogistics and PSA International from participating in port tenders at any of the dozen Indian government ports for the next three years.
Kandla port issued a termination notice to ABG Kandla Container Terminal on November 5, 2012 after the firm failed to fulfil a key contractual obligation on achieving the minimum guaranteed volume at the terminal for the last three years beginning 2008.
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