October 07, 2008

PSA to invest INR 240 crore in ABG Kandla Container Terminal

It is reported that PSA, formerly known as Port of Singapore Authority, is planning to invest up to INR 240 crore in ABG Kandla Container Terminal Limited by way of preferential allotment of compulsorily convertible preference shares. These would not exceed 49% of the paid up equity share capital of ABG Kandla Container Terminal.

In Kandla port, PSA's unit ABG Kandla Container Terminal handles berths 11 and 12 as a container terminal on a build, operate and transfer basis. PSA has sought government approval under Press Note 1 as the activities proposed to be carried out by ABG may be construed to be in the same field as its existing joint venture company in India.

The move comes just a month after ABG Infralogistics announced a pact under which, PSA India would buy a 49% stake in its unit ABG Kolkata Container Terminal Private Limited. ABG Infralogistics is engaged in the business of development, operations management and maintenance of container terminals in Kandla and Kolkata.

PSA holds an interest of 57.5% in PSA Sical which is operating the Tuticorin container terminal on a build own and transfer basis for 30 years. It also has a 60% interest in Chennai International Terminals Private Limited to manage the second container terminal in Chennai on a build own and transfer basis for 30 years.

PSA International is one of the leading global port groups. With its flagship operations in PSA Singapore Terminals and PSA HNN, PSA participates in 28 port projects in 16 countries across Asia, Europe and the Americas, with a global capacity of 111 million TEUs over 66 kilometer of quay length.