International Container Terminal Service Inc (ICTSI) has pulled out of a deal to operate a container terminal in India, declaring it not to be in the interests of the company.
In a disclosure to the Philippine Stock Exchange earlier this week, the company announced that subsidiaries ICTSI Ltd. and ICTS (India) Pte Ltd had signed a termination agreement with L&T shipbuilding Ltd. (LTSB) cancelling the company’s port agreement to manage and operate the Kattupalli Container Terminal in Tamil Nadu, India.
The operator is to be reimbursed for the license fee it paid to operate the terminal
Kattupalli Port was set to be the terminal operator’s first venture in India, with the deal signed with LTSB in 2011. Despite this decision, the company said it continuous to search for business opportunities in India.
The decision was a mutual one according to the company, made after lengthy discussions and thorough consideration.
“Both concluded that the existing contract is not beneficial to either party in its current form,” read the disclosure. It continued: “The cancellation of this particular conract has no effect or influence on any of ICTSI’s other operations.”
(Source: GMA News)