The news follows speculation last week that JNPT had served PSA a deadline of 10 September to sign the agreement to build the new Rs 6700 crore (US$1.2bn) terminal at the port.<\/p>\n
An industry source said to Port Strategy<\/i>: \u201cThe Trust has also decided to encash bank guarantees and recommended to the Government that ABG and PSA should be blacklisted and barred from bidding for any other port project in India.\u201d<\/p>\n
PSA has asked for more time to sign but the source said to PS<\/i> that JNPT was not happy with granting the extra time as it was more than six months since the ABG-PSA consortium won the bid.<\/p>\n
The JNPT board met yesterday to decide whether to grant an extension or to terminate the contract with the operator.<\/p>\n
Further, private terminal operators are currently struggling with the Tariff Authority for Major Ports (TAMP) in India. Earlier this year, TAMP tried to make significant reductions to tariffs which operators are refusing to implement saying it will make them unprofitable and penalise them for increasing efficiency.<\/p>\n
So there has been speculation in the industry that ABG and PSA may have been holding out on the deal because of the tariff threat \u2013 made worse by an alleged overbid for the deal, whereby the operator would share around 50% of the revenue with the government.<\/p>\n
PSA have so far declined to comment on the issue.<\/p>\n","protected":false},"excerpt":{"rendered":"
Port Strategy has learned that Jawaharlu Nehru Port Trust (JNPT) may have terminated the contract awarded to PSA International Pte Ltd for the fourth terminal at JN Port.<\/p>\n","protected":false},"author":8,"featured_media":8603,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[69],"tags":[],"sponsor":[],"class_list":["post-8602","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/posts\/8602","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/users\/8"}],"replies":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/comments?post=8602"}],"version-history":[{"count":1,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/posts\/8602\/revisions"}],"predecessor-version":[{"id":8604,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/posts\/8602\/revisions\/8604"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/media\/8603"}],"wp:attachment":[{"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/media?parent=8602"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/categories?post=8602"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/tags?post=8602"},{"taxonomy":"sponsor","embeddable":true,"href":"https:\/\/www.portstrategy.com\/greenport\/wp-json\/wp\/v2\/sponsor?post=8602"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}