The Hindu Business Line : PSA Corp rejects Tuticorin port offer

THE Tuticorin Port Trust (TPT) is exploring the possibility of raising finances from domestic and global financial institutions for developing a second container terminal at the port after Singapore's PSA Corporation rejected an offer for constructing the project through a joint venture with it.

"The joint venture plan has been shelved after PSA Corp was unable to give a firm undertaking on investing funds to the tune of Rs 850 crore for developing the project. PSA Corp had suggested that the joint venture can be formed first and the investment decision can be taken later. This was not acceptable to the port", Government sources said.

PSA Corp is operating a container terminal at berth No. 7 at the Tuticorin port and, as per the concession agreement signed with TPT, the private operator had the first right of refusal when a new box terminal is constructed at the port till it handled 1.15 lakh TEUs (twenty foot equivalent units).

PSA Corp had handled 2.13 lakh TEUs last year. Still, TPT had offered to have a joint venture with the Singapore-based port operator for developing a second container terminal planned at the newly built berth No 8.

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