MANILA, Philippines - Enrique Razon-led International Container Terminal Services, Inc. (ICTSI) is terminating its contract to manage and operate a container terminal in India.
In a disclosure to the stock exchange, ICTSI said its subsidiaries ICTSI Ltd and ICTS (India) Pte Ltd had signed a termination agreement with L&T Shipbuilding Ltd. to terminate the former's container port agreement for the management and operation of Kattupalli Container Terminal (KCT) in Tamil Nadu, India.
LTSB is a joint venture between Larsen & Toubro Limited (L&T) and Tamil Nadu Industrial Development Corporation (TIDCO).
"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," ICTSI said.
ICTSI said cancelling the Kattupalli contract is part of the group's overall strategy to move away from contracts that "isolate ICTSI from the facility’s day to day operations, including regulatory and commercial activities."
The company said it will be reimbursed for the license fee it paid to operate the terminal.
Despite this, ICTSI said it will still continue to search for opportunities in India.