The Hindu Business Line : PSA to invest Rs 240 cr in ABG Kandla Container Terminal

PSA (formerly Port of Singapore Authority), one of the leading global port groups, is planning to invest up to Rs 240 crore in ABG Kandla Container Terminal Ltd by way of preferential allotment of compulsorily convertible preference shares. These, upon conversion into equity shares post October 2011, would not exceed 49 per cent of the paid-up equity share capital of ABG Kandla Container Terminal.

The move comes just a month after ABG Infralogistics announced a pact under which, PSA India would buy a 49 per cent stake in its unit ABG Kolkata Container Terminal Pvt Ltd.

ABG Infralogistics is engaged in the business of development, operations management and maintenance of container terminals in Kandla and Kolkata.

BOT basis

In Kandla port, the company’s unit ABG Kandla Container Terminal handles berths 11 and 12 as a container terminal on a build, operate and transfer (BOT) 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 – PSA SICAL Terminals. PSA holds an interest of 57.5 per cent in PSA Sical which is operating the Tuticorin container terminal on a BOT basis for 30 years.

It also has a 60 per cent interest in Chennai International Terminals Private Ltd (CITPL), to manage the second container terminal in Chennai on a BOT basis for 30 years.

“The business operations undertaken by ABG for Kandla port in Gujarat will not conflict with the interest of the activities of SICAL who is currently operating in the similar business area at Tuticorin container terminal and the Chennai container terminal, through the joint ventures of PSA Sical and CITPL, respectively,” sources said.

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 km of quay length.