Trade unions in the Cochin Port Trust have raised apprehensions over the Centre’s nod in allowing changes in the shareholding of container terminals operated by DP World in major ports.

The unions pointed out that through this decision, the government has accorded sanction for transferring the shares of container terminals including India Gateway Terminal in Kochi, NSICT, JNPT, Mumbai Port and CCT-Chennai, to a single holding company under the name Hindustan Ports Pvt Ltd.

With this approval, DP World would get an opportunity not only to consolidate the shareholdings but also to combine the entire earnings of five terminals in India’s major ports into a single cash-box, the unions cutting across party lines alleged.

C.D. Nandakumar, general convenor, Cochin Port Protection Committee, told BusinessLine that the government had neither taken the Port Trust board into confidence nor obtained the view of the trustees before issuing such directions. According to him, the licence agreement for the Vallarpadam Terminal was signed between Cochin Port Trust and India Gateway Terminal and, hence, the government’s proposal was illegal.

By forming a single holding company, the terminal operator’s intention was to have easy access to mobilisation of finances by pledging its assets in major ports, he said.

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