India shuts ports to Chinese companies
- From: cnw <cnw@xxxxxxx>
- Date: Wed, 30 Aug 2006 23:00:28 +0800
India shuts ports to Chinese companies
Manju Menon
[ 30 Aug, 2006 0041hrs ISTTIMES NEWS NETWORK ]
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MUMBAI: After close to a year of intense debate, the Indian government has
decided it does not want the Chinese investing in, or managing any Indian port.
The first company to bear the brunt of this decision will be Hong Kong-based
Hutchison Port Holdings (HPH), the largest independent port operator in the
world. The company has been waiting for security clearances before it could go
ahead with its bids to build container terminals for Mumbai and Chennai at Rs
1,200 crore and Rs 494 crore respectively. The decision also eliminates future
Chinese participation in 13 ports planned across the country at a cost of Rs
61,000 crore.
In many ways, the move is reminiscent of the US Senate?s decision early this
year not to allow Dubai Ports (DP) to operate in many American states, including
New York and Philadelphia, citing security concerns. Although DP?s entry had
President Bush?s backing, the proposal was shot down by the US Congress,
sparking a storm of protest across the world, with allegations of bigotry and
racial discrimination.
The salvo that ended the debate in India was fired last week when the government
sent a confidential note to the chairmen of Mumbai and Chennai Port Trusts.
Citing 'security concerns', the letter informed the heads of both ports that it
had rejected applications from HPH.
Sources said the Kaidi Electric Power Company and Chinese Harbour Engineering
Company, which have bid for Vizhinjam port in Kerala, will also meet the same
fate as Hutchison.
Both Mumbai and Chennai ports had postponed the container terminal projects for
over a year because Hutchison?s application was pending before the government.
Following the government note, they have decided to go ahead with the bidding.
"We have informed the others to submit their bids for building the container
terminal by September 15," said P Mohana Chandran, secretary, Mumbai Port Trust.
Chennai Port had shortlisted four bids including the one from Hutchison Port.
"We are analysing the repercussions and will arrive at a decision in a few
days," said a Chennai Port official.
Meanwhile, L&T, which had tied up with Hutchison Port for bidding on both
projects, has now tied up with Manila-based International Containers Terminal
Services to stay in the bid.
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