Asia/Pacific News
Singapore's PSA Facing $61 Million Damages Claim from JNPT
Jawaharlal Nehru Port Trust (JNPT), the operator of India's busiest port, is taking legal action against Singapore's PSA International Pte Ltd over a failed container terminal tender, Livemint reports.
The port operator is reportedly seeking RS 400 crore ($61 million) in damages.
In 2011, PSA International reportedly won a tender to build the facility, but failed to sign a a concession agreement within a specified amount of time.
The deal reportedly fell through as a result, though the company won a re-tender for the project in 2013 and is still expected to build the facility.
"The re-tendering allowed PSA to quote a 15 percent lower revenue share price bid," said an unnamed port industry executive, in addition to a deal involving new tariff norms that are widely viewed as more favourable to port operators.
JNPT also reportedly argued that the events had pushed back construction of the terminal by at least four years, and had led to losses of up to RS.1,215 crore ($185.4 million).
"The port also took a legal opinion from the attorney general of India, who said that the port has a right to claim damages against PSA," said JNPT chairman Neeraj Bansal.
Last month, the Indian government announced that it would be reducing the customs duty on bunker fuels in an attempt to support economic growth in the country's lagging shipping industry.
