Chinese ghost comes to haunt Hutchison Port

The Chinese antecedents of Hutchison Port Holdings have disqualified the company from participating in the re-development of bulk terminal t...

The Chinese antecedents of Hutchison Port Holdings have disqualified the company from participating in the re-development of bulk terminal to container terminal project at Jawaharlal Nehru Port (JNPT) on build, operate and transfer (BOT) basis.

In a recently held meeting of committee of secretaries, the committee decided to clear all the bidders from security angle except Hong Kong based Hutchison Port Holdings Ltd (HPH) to participate in the JNPT project. The decision was taken despite of HPH being a leading company in this field and having operations all over the world, because of the security angel involved with it.

Though, in the meeting it was expressed that port sector in the country would lose out if HPH were to be debarred, company was not given security clearance on the basis of reservations expressed by Intelligence Bureau (IB).

In its observations, IB said that ‘the proposed terminal is in close proximity of strategically located Southern Naval Command and the involvement of foreign firms with Chinese or Pakistani connections in the project could have serious security implications’. It also noted that ‘in case the project is awarded to HPH on BOT basis, it would entail presence of the concerned foreign firms at Kochi harbour, close to Southern Naval Command for a long time’. While tracing the links of HPH, it was also reported by RAW that HPH is a part of Cheung Kong Holdings, whose chairman is a Hong Kong Chinese and has widespread connections with the Chinese leadership and PLA. RAW also noted that its activities in other countries also came under suspicion hence it was considered unadvisable to allow HPH to undertake this project.

The meeting was held to consider three pending notes from the shipping ministry regarding security clearance for their projects in Kochi, Mumbai and JNPT ports. The meeting was participated by the representatives of external affairs ministry, home, shipping and defence ministries.

While commenting on the development, the General Manager (Corporate Communications) of Hong Kong based Hutchison Whampoa Laura Cheung told The Indian Express “I don’t know why there is such a concern regarding security as we are commercial and not political entity.”

She said that “though our parent company Cheung Kong Holdings is based in Hong Kong, Hutchison operates more like a global company. Our chairman is Chinese but he serves on the boards of many multinational companies, including HSBC. We are friendly not only with Chinese, but with British, Australian and Italian governments as well.”

Story continues below this ad

Cheung informed that Hutchison is an international conglomerate with operations in 40 countries across the world. We are diversified in sectors including property, energy, telecom, ports and retail. It owns three ports in England and is majority stake holder in Europe’s largest Rotterdam Port, she added.

To participate in the JNPT project on BOT basis, 12 companies had quoted for the global tender. The government has already cleared other 11 firms from the security angle for participation in the bidding process. These firms include FRS Services Companies and Stevedoring Services of America, Westport Holdings Sdn Bhd, Larsen & Toubro Ltd, NYK Line, Marubeni Corporation, CSX World Terminals LLC, Sea King Infrastructure, Maersk, United Liner Agencies of India, PSA Corporation and CMA CGM/Terminal Link.

The bid of HPH was received along with 36 per cent Indian partnership. IDFC in this venture had proposed to pick up 26 per cent while Mahindra Infrastructure Development Ltd was supposed to hold 10 per cent in the project.