Strikes at Cochin Port raises DP World doubts about building new terminal

2007-11-22

Dubai Ports World, the holding company of India Gateway Terminals Ltd (IGTL), which operates the Rajiv Gandhi Container Terminal for the Cochin Port Trust, has written a letter to the trust, raising concerns about the frequency of strikes at the container terminal, reports The Hindu.

The newspaper said that the strikes issue is forcing Dubai Ports World to question the financial viability of constructing a proposed container transhipment terminal on Vallarpadam Island, which the report says will be the first facility of its kind in India.

In response to these concerns, the Cochin state government has given its assurances that it would look into the matter, as well as other "disruptions" to business at the Container Terminal. The report said the assurances were given by Chief Minister V.S. Achuthanandan to Port Trust chairman N. Ramachandran, when they recently met to discuss the letter from DP World.

It claimed that port authorities have discussed the issue with Dubai Ports World as well, and are urging the global terminal operator not to postpone or halt work on building the planned box transhipment terminal.

According to Mr. Ramachandran, the departments of Labour and Industries had earlier this year launched a "campaign to root out illegal and rampant practices such as forcible collection of money on the trust premises," which were reported to be disrupting port activities and business, the report added.

Source: schednet
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