Sical Logistics exits Chennai CT as PSA boosts stake

PSA INTERNATIONAL has acquired Sical Logistics' 27 per cent stake in the Chennai International Terminal (CIT) for an undetermined amount, after Sical decided to exit from the joint venture.

The first phase of CIT was launched in the middle of last year, but has been under-utilised since its opening. It is Chennai's second container terminal with an annual handling capacity of 1.5 million TEU, but it has only handled 300,000 TEU this year, reports Alphaliner.

The terminal joint venture company was originally established in 2007 with Sical's share at 40 per cent and PSA's at 60 per cent. The financial crisis prompted Sical to reduce its share to 27 per cent in 2009.

"The decision to eventually quit the project entirely will help Sical's parent Spic to significantly reduce debt which it accumulated over the past few difficult years. Furthermore, Sical reportedly plans to re-invest some of the yields into its dry bulk terminal at Mangalore and Ennore," said Alphaliner.
(Source:www.schednet.com)