Manila: International Container Terminal Services Inc (ICTSI) has terminated its contract for the management and operation of a container terminal in India.
In a disclosure to the Philippine Stock Exchange, the port operator said its subsidiaries ICTSI Ltd and ICTS (India) Pte Ltd and L&T Shipbuilding Ltd (LTSB) have signed a termination agreement cancelling the container port agreement for the management and operation of the Kattupalli Container Terminal (KCT) in Tamil Nadu, a contract it won back in 2011.
LTSB is a joint venture between Larsen & Toubro Ltd (L&T) and Tamil Nadu Industrial Development Corp (TIDCO).
"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 said.
"For its part, ICTSI deems the cancellation of the Kattupalli contract in keeping with the ICTSI Group’s overall strategy of moving away from contracts that isolate ICTSI from the facility’s day to day operations, including regulatory and commercial activities," the port operator said, adding that it will be reimbursed for the license fee it paid to operate the terminal. [07/07/14]