International Container Terminal Services, Inc. has terminated, through its subsidiary ICTS (India) Pte Ltd, its agreement with L&T Shipbuilding Ltd (LTSB) for ICTSI to manage and operate the Kattupalli Container Terminal in Tamil Nadu, India.
On signing the termination agreement nullifying their container port contract, both sides said the current arrangement was not beneficial to either party.
ICTSI explained that the cancellation of the Kattupalli contract was in keeping with the group’s overall strategy to move away from contracts that isolate ICTSI from the facility’s day-to-day operations, including regulatory and commercial activities.
ICTSI will be reimbursed for the license fee it paid to operate the terminal.
“The cancellation of this particular contract has no effect or influence on any of ICTSI’s other operations. The group will continue to actively search for opportunities in India,” ICTSI said in a disclosure filed with the Philippine Stock Exchange.
The LTSB is a joint venture between Larsen & Toubro Limited and Tamil Nadu Industrial Development Corporation.
As of May 31, ICTSI is involved in 30 terminal concessions and port development projects in 22 countries worldwide. Its latest venture is the design, building and commissioning of the third international container terminal at the Port of Melbourne in Australia.
Photo from www.lntkict.com
