Chidambaranar port dithers on challenging arbitration award favouring PSA.

Union government-owned VO Chidambaranar port in Tamil Nadu could face a potential revenue loss of at least Rs.1,521 crore if it doesn't challenge a tribunal decision to move to a revenue-sharing format from a royalty model for its container terminal contract with Singapore's PSA International Pte Ltd. that ends in 2028.

The port should challenge the award of the three-member arbitration tribunal, lawyer T.R. Rajagopalan has advised.

PSA Sical Terminals Ltd., which has been operating the container terminal at Chidambaranar port (formerly known as Tuticorin port) since 1998, is 62.5% owned by PSA International, a unit of Temasek Holdings Pte Ltd., Singapore's state-run investment firm.

An arbitration award can be challenged in a high court within 90 days; otherwise it is taken to be confirmed. The 90-day window ends on 15 May.

There is no indication yet from Chidambaranar port whether it will challenge the award. 'We don’t want to comment on PSA Sical Terminals,' a spokesman for Chidambaranar port said.



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