The Spanish terminal operator Grup TCB said a consortium that planned to build and operate a container terminal in Ennore, India, is withdrawing from the project immediately.
"The reasons for this decision are based on the unfavorable evolution
of the Indian economy since the awarding of the concession that has
made the project no longer financially viable," TCB said. "The project feasibility
has been greatly affected due to higher interest rates, higher total
project costs due to the devaluation of the Indian rupee and a slowdown
in growth of container volumes in the Chennai area."
Grup TCB had a 26 percent stake in the consortium Bay of Bengal Gateway Terminal Private Ltd. which in August 2010 was awarded a 30-year concession to build and operate a container terminal capable of handling 2.3 million TEUs in Ennore, about 15 miles north of Chennai.
At the time of the concession award, TCB had identified the other members of the consortium as the Spanish construction company Obrascon Huarte Lain SA, Indian construction company Lanco Infratech Ltd., and Indian infrastructure investor Eredene Capital PLC.