DP World completes buyout of Chennai Container Terminal

02 June 2008

Mumbai: Dubai Ports World has completed the buy-out of its partners, acquiring 100 per cent stake in Chennai Container Terminal Pvt Ltd in Chennai port, the company said in a statement.

The global marine terminal operator said it bought the 20-per cent stake of Chettinad Logistics and the five per cent stake of Jakari Group in the container terminal. The company, however, did not disclose the value of the deal.

DP World said the acquisition has been made possible by its focus on terminal business expansion, a strong growth trend in South Indian trade and the partners' desire to reinvest in their respective core businesses.

''We value the long relationship with both partners and the company remains committed to realising its objective of expansion of the terminal in the near future,'' DP World senior vice president and managing director of the Indian subcontinent and chairman of Chennai Container Terminal Ganesh Raj said.

''The move for 100 per cent ownership reflects the great commitment and belief by DP World in the terminal development in particular and to the employees of Chennai Container Terminal,'' Ennarasu Karunesan, CEO of Chennai Container Terminal, said.
 
Meanwhile, the new private container terminals coming up at the Chennai and Ennore ports are likely to break the stranglehold of Dubai-based DP World in southern India.

DP World, which started with the acquisition of P&O Terminals in early 2006, has now a 50 per cent share of the terminal operations in India and more than 75 per cent share in the south.