ICTSI, through a Manila stock exchange filing, announced the termination of the contract by its ICTS (India) unit to operate the Kattupalli Container Terminal, claiming that the deal was “not beneficial” to either party.
“ICTSI deems the cancellation of the Kattupalli contract in keeping with the ICTSI group’s overall strategy of moving away from contracts that isolate ICTSI from the facility’s day-to-day operations, including regulatory and commercial activities,” it said.
ICTSI said that it will be reimbursed an undisclosed amount for the license fee to operate Kattupalli. The port operator added that it will continue to look for opportunities in India as part of its broader strategy to operate ports in emerging markets.
Kattupalli Container Terminal, which is ICTSI’s first venture in India, is located north of Ennore port in Chennai. The terminal has an initial capacity of 1.2m teu per year.
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