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KPA cancels 30-year concession after PSA & ABG Group fail to meet contractual requirements
PSA International has this week had its 30-year concession it shares with ABG Group to manage Kandla Port’s container terminal terminated.
The decision, which further dents the Singaporean terminal operator’s aspirations of expanding its Indian operations, was made by the Kandla Port Authority (KPA) after the terminal concessionaires failed to handle the minimum cargo traffic stipulated by the port authority over the past three years.
Speaking to the JOC, the KPA said that it would takeover from both PSA and ABG in the day to day running of the box facility.
In a trade advisory released on Monday, the KPA looked to reassure its customers saying that its business as usual at the terminal and that the port is “fully geared and equipped in all respects to handle container vessels and container yard operations from the date of taking over the container terminal without any interruption or disruption.”
The termination of the ABG Kandla Container Terminal contract follows the recent collapse of PSA’s US$1.5 billion bid for the fourth container terminal at the Port of Nhava Sheva.
ABG Kandla Container Terminal, which boasts an annual capacity of 600,000 TEU, was 51 percent owned by ABG Infralogistics and 49 percent by PSA.
The private terminal opened for business in 2007.
