The port is thought to have been struggling for the past two years to stay afloat, no thanks to nearby Chennai and Kamarajar ports. Despite efforts to attract more shipping lines and ensure smooth, effective cargo handling, it seems to have hit a dead end.
In a statement released earlier this week, ICTSI said: “The mutual decision for the contract cancellation came after lengthy discussions and thorough consideration by both ICTSI and LTSB. Both concluded that the existing contract is not beneficial to either party in its current form.”
ICTSI will be reimbursed for the license fee it paid to operate the terminal.
ICTSI managed the the Kattupalli Container Terminal in Tamil Nadu, India, which was its first and only venture in booming Asian country.
“The cancellation of this particular contract has no effect or influence on any of ICTSI’s other operations,” ICTSI stressed. “The Group will continue to actively search for opportunities in India.”
Now, it’s thought that Maersk’s APM Terminals is interested in taking over the development. The global container terminal operator already has ventures at the ports of Mumbai and Pipavav.