Hutchison Port ruled out of Indian ports bidding for security concerns

Hong Kong-based Hutchison Port Holdings (HPH) was dropped out of the bidding for container terminal project in Mumbai as it failed to get the security clearance from the Indian government.

Mumbai Port Trust secretary Mohana Chandran confirmed to Xinhua on Wednesday that the port trust has received a notice that the Indian government rejected applications from HPH for security concerns.

Wednesday's The Times of India reported that Chennai Port Trust also received the same note from the government.

HPH had tied up with Larsen and Toubro Limited, an Indian company, in bidding for the management of Mumbai and Chennai container terminals.

In the past year the company, who operates 251 berths at 43 ports in the world, had been waiting for security clearance from the Indian government who was wary of Chinese companies' investment.

According to the report, the Kaidi Electric Power Company and Chinese Harbor Engineering Company, who have bid for Vizhinjam port in south Indian state Kerala, may meet the same fate as HPH.

Both Mumbai and Chennai ports had postponed the container terminal projects for about a year as Hutchison's application was pending before the government. They have decided to move on the bidding after the government decision.

"We have informed the others to submit their bids for building the container terminal by Sept. 15," Chandran said.

Meanwhile Larsen and Toubro Limited have turned to Manila-based International Container Terminal Services for bidding for two projects jointly.

Source: Xinhua