International Container Terminal Services Inc. (ICTSI), through its subsidiaries ICTSI Ltd. and ICTS (India) Pte. Ltd., and L&T Shipbuilding Ltd. (LTSB), have signed a termination agreement canceling ICTSI’s container port agreement for the management and operation of the Kattupalli Container Terminal (KCT) in Tamil Nadu, India.
In a disclosure to the Philippine Stock Exchange (PSE) on Tuesday, the company said, “The mutual decision for the contract cancellation came after lengthy discussions and thorough consideration by both ICTSI and LTSB. Both concluded that the existing contract is not beneficial to either party in its current form.”
For its part, ICTSI deems the cancellation of the Kattupalli contract to be 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.
ICTSI will be reimbursed for the license fee it paid to operate the terminal.
The company said that the cancellation of the contract has no effect or influence on any of ICTSI’s other operations. The Group will continue to actively search for opportunities in India.
LTSB is a joint venture between Larsen & Toubro Limited (L&T) and Tamil Nadu Industrial Development Corp. (TIDCO).
ICTSI is a leading port management company involved in the operation and development of marine terminals and port projects in six continents. ICTSI has received global acclaim for its public-private partnerships with economies that are divesting their port assets to the private sector.