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March. 20,
2006
Dubai
Ports World (DP World) of the United Arab Emirates (UAE),
which caused apolitical storm in the US when it acquired
P&O's ports in that country, has now sailed into
controversy in India.
The P&O deal would give DP World some 50 per cent of
India's container shipping traffic. The proposed
acquisition of three Indian container terminals operated
by the P&O are
Nhava Sheva in Mumbai,
Chennai port at Tamilnadu, and
Mundra in Gujarat. DP World International, which
already has operations in India, in Kochi and
Visakhapatnam. DP World is the developer and operator of
container terminal at Vallarpadam.
In the latest twist, the Chennai Port Trust is reportedly
pondering a move to slap a show-cause notice on P&O Ports
over violation of concession rights. Earlier, such a show
cause notice was also served on
P&O by Gujarat Maritime Board (GMB), the regulatory
authority for ports in Gujarat, asking why its licence to
operate Mundra International Container Terminal in Kutch
should not be cancelled.
Local critics appears to be strongly against the
transaction have suggested that this would amount to a
monopoly and have called on central and regional
governments to block the transaction.
View Press Report:
Port union's plea to invoke MRTP Act
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