According to a Dow Jones wire report, Shell told the Gujarat Maritime Board that PSA has withdrawn from the project and Shell is looking for a new partner.
A PSA spokesman declined to comment in response to queries from BT.
A news report last year said that Hazira Private Port Ltd (HPPL) and PSA India Pte Ltd had signed a preliminary agreement on Jan 13, 2007 to develop a two-berth container terminal at Hazira. PSA India is a wholly owned subsidiary of PSA International.
The proposed terminal would be the first in south Gujarat, with a likely capacity of one million twenty-foot equivalent units (TEUs) annually.
Under the proposed build, own and operate deal, HPPL was to own the general port infrastructure and PSA India was to pay HPPL for use of the port.
The container terminal is expected to increase capacities in India when it comes on stream, as well as provide a gateway for imports and exports and cut access time to the northern India market. It will also relieve congestion at Mumbai terminals.
A terminal at Hazira will mean new competition for private container terminal companies such as Maersk and Adani, which already run container terminals in Gujarat state.