Adani Ports scraps plan to develop container terminal in Myanmar
PORTS & SHIPPING

Adani Ports scraps plan to develop container terminal in Myanmar

On Wednesday, India's Adani Ports said it was dropping plans to develop a container terminal in Myanmar, weeks after applying for a US licence for the project, saying it thought it did not violate permissions.

A military coup in Myanmar in February and an ensuing crackdown on mass protests in which hundreds have been killed has brought international condemnation and permissions on military figures and military-controlled entities.

In a statement, Adani said that the firm's risk management committee, after a review of the situation, has chosen to work on a project on exiting the firm's investment in Myanmar comprising exploring any divestment opportunities.

The firm is likely to exit the investment completely in the strife-torn South Asian country between March and June 2022, it said.

In August it had urged the United States' Office of Foreign Assets Control (OFAC) for a licence to run the Myanmar container terminal.

Adani had said in May that it would drop a Myanmar container terminal project and write down the investment if found to be in breach of U.S. sanctions.

The firm had invested $127 million, involving a $90 million upfront payment for leasing land, it said in May, adding a write-down would not have a material influence since the project accounts for only around 1.3% of the firm's total assets.

Last year, Adani won the proposal to develop and run Yangon International Terminal, which it said is an independent project wholly owned and generated by the firm.

A March report issued by two rights groups indicated documents purporting to reveal that an Adani unit would pay up to $30 million in land lease fees for the project to the Myanmar Economic Corporation (MEC), one of two military-controlled conglomerates under US sanctions.

Image Source


Also read: APM Terminals to partner with Wan Hai Lines for container terminal bid

On Wednesday, India's Adani Ports said it was dropping plans to develop a container terminal in Myanmar, weeks after applying for a US licence for the project, saying it thought it did not violate permissions. A military coup in Myanmar in February and an ensuing crackdown on mass protests in which hundreds have been killed has brought international condemnation and permissions on military figures and military-controlled entities. In a statement, Adani said that the firm's risk management committee, after a review of the situation, has chosen to work on a project on exiting the firm's investment in Myanmar comprising exploring any divestment opportunities. The firm is likely to exit the investment completely in the strife-torn South Asian country between March and June 2022, it said. In August it had urged the United States' Office of Foreign Assets Control (OFAC) for a licence to run the Myanmar container terminal. Adani had said in May that it would drop a Myanmar container terminal project and write down the investment if found to be in breach of U.S. sanctions. The firm had invested $127 million, involving a $90 million upfront payment for leasing land, it said in May, adding a write-down would not have a material influence since the project accounts for only around 1.3% of the firm's total assets. Last year, Adani won the proposal to develop and run Yangon International Terminal, which it said is an independent project wholly owned and generated by the firm. A March report issued by two rights groups indicated documents purporting to reveal that an Adani unit would pay up to $30 million in land lease fees for the project to the Myanmar Economic Corporation (MEC), one of two military-controlled conglomerates under US sanctions. Image SourceAlso read: APM Terminals to partner with Wan Hai Lines for container terminal bid

Next Story
Infrastructure Transport

Railway stations in Prayagraj undergo major passenger facility expansion

The Railway Board Chairman and CEO, Satish Kumar, conducted an extensive inspection on Saturday alongside the General Manager of Northern Railway and the officiating General Manager of North Central Railway. Their visit focused on various ongoing projects at multiple stations across the Northern and North Central Railway zones, with particular attention to enhancing facilities for the upcoming Maha Kumbh. During the inspection, Chairman Kumar reviewed the construction of a vital bridge over the River Ganga, specifically between Jhunsi and Prayagraj Rambagh. This bridge is expected to significa..

Next Story
Infrastructure Transport

Madurai-Thoothukudi broad gauge line works under review

The construction of the Madurai-Thoothukudi broad gauge line, which includes the crucial Melmarudur-Tiruparankundram project, is currently under careful review. This update comes from Southern Railway's assistant public information officer, J Kumarasubramanian, following an RTI inquiry made by a concerned citizen, Dayanand Krishnan. The new broad gauge line is projected to cover a total length of 143.5 km, with the initial 18 km stretch between Milavittan and Melmarudur completed and sanctioned by the Commission of Railway Safety on March 8, 2022. While substantial progress has been made on t..

Next Story
Real Estate

DLF expects Rs 26,000 cr from super luxury project in Gurugram

Realty giant DLF is projecting impressive revenue of Rs 26,000 crore from its newly unveiled super-luxury project, The Dahlias, situated in the heart of Gurugram. Ashok Tyagi, the Managing Director of DLF, shared these insights during a recent conference call with market analysts, highlighting the project's potential amidst rising demand for high-end residential properties. The Dahlias project spans an expansive 17 acres and is set to feature approximately 420 ultra-luxury apartments, each boasting a minimum size of 10,300 square feet. This ambitious development has already garnered significan..

Hi There!

"Now get regular updates from CW Magazine on WhatsApp!

Join the CW WhatsApp channel for the latest news, industry events, expert insights, and project updates from the construction and infrastructure industry.

Click the link below to join"

+91 81086 03000