Company: P&O PORTS

State: NEW SOUTH WALES

Sector: INFRASTRUCTURE

P&O Ports has been developing private ports throughout the world
since the mid 1980s, when new domestic investment opportunities declined
in Australia. Following the opening of the Indian market to private port
investment in the early 1990s, P&O Ports successfully developed
several facilities along the Indian coast and now is one of the largest
foreign developers of infrastructure in India. In July 1997, P&O Ports
obtained a 30 year licence to build, operate and manage a container
terminal at the Jawaharlal Nehru Port in Mumbai. The terminal, the Nhava
Sheva International

Container Terminal, was completed in 1999, at a cost of US$200 million.
It uses state of the art equipment and sophisticated computerised ship
planning and crane and cargo management systems. As a result, it is has
set new Indian standards for vessel turn around times and the number of
ship moves. Its success prompted P&O Ports to expand capacity
significantly. In addition to Nhava Sheva, P&O Ports also has further
interests in other port and terminal developments. At Kandla (Gujarat),
P&O Ports was the highest bidder in a recent tender and

negotiations on a concession agreement are complete; the Port has
approved P&O Ports' bid with some caveats which are presently being
discussed. At Chennai (Tamil Nadu), P&O Ports has signed a concession
and is due to take over a large existing port facility in late 2001. At
Cochin (Kerala), P&O Ports is the highest bidder for the privatisation
of the existing container terminal and is awaiting Government approvals.
Besides these interests, P&O Ports also is investigating other port
related acquisitions like inland container handling facilities, container
terminals in Haldia (West Bengal) and Mumbai and possible further
development at Jawaharlal Nehru Port.

P&O Ports found the widespread use of English and India' s
familiar British based legal system positive elements in developing their
ventures. However, their success has not been without challenges. For port
development projects, negotiations with central and state governments can
be quite drawn out affairs. However, patience and diplomacy paid off and
P&O Ports considers India has good future opportunities.

Source: P&O Ports, 2001.