PSAI expands its presence in India

The Singapore-based operator has reportedly purchased a 49% stake in ABG Kolkata Container Terminal for around US$37.9m, beating off competition from ocean carriers Zim of Israel and Geneva-based Mediterranean Shipping Company (MSC). It already owned a 12% share in the terminal, which is located on India’s northeast coast and is operated by ABG Infralogistics under an own-operate-maintain contract it won in 2005. In 2006/07 the terminal handled 170,000 teu and in 2007/08 it hopes to increase this to 200,000 teu.

As part of the deal, PSAI has also agreed to subscribe to preference shares in another ABG subsidiary, ABG Kandla Container Terminal, located in the western state of Gujarat. No details of this deal have been disclosed. ABG took over operation of the terminal from Kandla Port Trust in April 2007, and aims to increase its throughput by 25% this financial year to 200,000 teu.

PSAI International paid around US$10.6m to acquire a 15% stake in ABG Heavy Industries in 2006, which subsequently in 2007 changed its name to ABG Infralogistics. ABG will use the proceeds from the latest PSAI deal to fund planned expansion projects.