DP World-like decision in India shuts out Chinese terminal operators

DP World-like decision in India shuts out Chinese terminal operators In a move that recalls the fiery debate earlier this year over the role of international terminal operators at U.S. ports, the Indian government has decided to prohibit Chinese companies from investing in, or operating, marine terminals, the Times of India reported Tuesday.
   According to the newspaper, the government sent confidential notes last week to the chairmen of the Mumbai and Chennai port trusts, advising them that the government had rejected applications from Hong Kong-based Hutchison Port Holdings to operate terminals in the two ports because of security concerns. It was reported earlier that the Indian cabinet had decided as far back as July to reject Chinese involvement in Indian port operations.
   The debate over Chinese involvement in Indian port operations has stretched for a year, and should remind those in the industry of the contentious debate over DP World's attempt to operate terminals in U.S ports after it had acquired P&O Ports.
   The Indian government's decision not only wipes out Hutchison's planned $270 million and $111 million projects in Mumbai and Chennai, respectively, but also Chinese investments worth $13.7 billion in 13 other Indian ports.
   'Both Mumbai and Chennai ports had postponed the container terminal projects for over a year because Hutchison’s application was pending before the government,' the newspaper reported. 'Following the government note, they have decided to go ahead with the bidding.'
   The protectionist attitude of the government seems to stem from worries over rapid globalization. According to an August New York Times article, the government has been looking long and hard at ways to protect its telecommunications, airline, media and port industries. The government still screens all joint ventures in which foreign partners control more than 49 percent of the entity. And according to the Times, India's Communist party decried the government's decision to allow a Greek national to become chief operating officer of the newly privatized Delhi International Airport.