Kandla Port Trust (KPT) plans to take action against ABG Kandla Container Terminal (ABG-KCTL) as the former is not satisfied with the cargo handling performance of the latter.
Kandla Port alleges that the ABG-KCTL, which has been active in the port since 2005, failed to ensure minimum guaranteed throughput (MGT) for four successive years. Reports suggest that KPT may even terminate the contract.
ABG-KCTL, the special purpose vehicle (SPV) floated by the ABG Group in partnership with SingaporeÂ’s PSA, runs two container berths (11 and 12) at Kandla port.
It is learnt that the SPV was finding it difficult to handle more container ships and thus ensure MGT of 172,000 twenty-foot equivalent units (TEUs) in both the berths annually.
Inadequate draft and the absence of the night navigation facility are reasons cited by the ABG Group for failing on the MGT at Kandla port.
Kandla port suffered from fluctuating draft, going up to 10 metre in high tide and dropping to around six metre or so during low tide.
During initial years, the actual throughput was much higher than the stipulated MGT, only to decline subsequently.
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