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T.E. Raja Simhan

Chennai, Feb. 6 Sical Logistics Ltd has put on hold its Rs 1,500-crore greenfield port citing “bad market conditions.” It would rather concentrate in the short term on consolidating operations, according to sources.

It may be recalled that in September 2007, Sical signed an agreement with Jurong Port, Singapore, for undertaking a detailed study to identify a bulk port project in India. The study was in advanced stages of closure.

“The export-import trade is in a bad condition. We have decided to drop the project at this juncture and concentrate on consolidation of operations. All other projects are on schedule,” sources said.

In September, the company’s Managing Director and Group CEO, Mr Sudhir S. Rangnekar, told Business Line that Sical will have 51 per cent equity stake in the project and Jurong, the balance on a debt-equity ratio of 2:1. The proposed port was planned to handle bulk items, mainly iron ore exports and coal (both coking and thermal) imports.

The Chennai-based logistics company had identified five States, including Tamil Nadu, Andhra Pradesh and Maharashtra – for the project.

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