PSA set to boost Indian presence

According to local media reports, the group, which is the world’s largest container port operator, won the operation and maintenance (O&M) contract to handle containers from five berths at Netaji Subhas Dock after successfully outbidding United Liner Agencies of India Ltd and Bollore Africa Logistics.

Reportedly, of the five berths at Kolkata Port, three will be mechanised, while loading and unloading of containers at the other two berths will be carried out with the help of a ship.

PSA is apparently expected to erect 12 new cranes and deploy 30 tractor trailers for the 10-year contract, beginning 1 December 2014.

This contract win fits in with the container port operator’s plans to upgrade its global ports and invest in “new growth markets” in 2014.

ABG Kolkata Container terminal Pvt Ltd, a joint venture between ABG Infralogistics and PSA, already handles containers from two berths at Kolkata. ABG owns a 51% stake in the terminal, with PSA holding the balance. The 10-year contract for the existing two berths will end in November.

But it hasn’t always been easy to invest in India, especially for PSA, which faced being blacklisted from spending on Indian port projects back in 2012 after a disagreement with Jawaharlal Nehru Port Trust (JNPT) and the country’s Tariff Authority for Major Ports (TAMP) – the regulator for terminal operators at Union government-run facilities.

Now things appear to be looking up for the operator as India makes plans to boost the competitiveness of its ports making it easier invest.