Printer Friendly
Email a Friend
DP World falls short of Chennai performance targets
12 Jul 2008
Chennai container terminal operator DP World has agreed to pay $22m in compensation for not having covered minimum container throughput figures for non-transhipment traffic between December 2006 and November 2007.
According to an agreement it has with the Port Trust, 20% of total traffic in the third year of operation has to be in the form of import-export boxes, rising to 25% by the fourth year and to 30% by the fifth.
Additionally, DP World must develop Chennai as a transhipment hub, or the Port Trust will be at liberty to revoke its operating license.
Undeterred, DP World has acquired the remaining 25% of the equity that it did not already hold in Chennai Container Terminal Limited, buying the 20% held by Chettinad Logistics and the 5% controlled by the Behramjee group for an undisclosed sum.
