BL reported that Sical Logistics Ltd has put on hold its INR 1,500 crore Greenfield port citing bad market conditions.

According to sources, it would rather concentrate in the short term on consolidating operations. 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.

Sources said that “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.”

Mr Sudhir S Rangnekar MD & Group CEO of Sical Logistics said that Sical will have 51% 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 imports.

(Sourced from Business Line)