Israel Corporation subsidiary Zim Integrated Shipping Services Ltd. has dropped out of the $300 million tender to build and operate the Ennore container terminal project in Chennai, India, as the slowdown in the shipping industry continues to affect the company. Zim subsidiary Zim Ports Ltd. (ZPL) notified the other partners in the consortium to this effect. ZPL is member of a consortium that comprises Japan's Nippon Yusen Kaisha (NYK Line) Ltd., Evergreen Marine Corporation (Taiwan) Ltd, and South Korea's Hyundai Merchant Marine Co. Ltd. ZPL had a 22 percent stake in its consortium, and its investment was estimated at $66 million.
Shipping industry sources believe that Zim's decision was one of the company's streamlining measures, and that it decided to reduce activity in India because of the plunge in shipping prices.
Zim has mothballed part of its fleet, including ships used on its Indian and European routes because of the drop in demand.
The Ennore container terminal is intended to handle 1.5 million containers a year when it opens in 2011. The tender was for a 30-year operating franchise for the port.
In July 2008, Zim announced that the consortium passed the prequalification stage in the tender, along with four other consortia.
Zim's fleet currently includes 104 ships, of which it owns 27 ships and leases 77. The company is expected to report a loss of more than $200 million in 2008.
Shipping industry sources believe that Zim's decision was one of the company's streamlining measures, and that it decided to reduce activity in India because of the plunge in shipping prices.
Zim has mothballed part of its fleet, including ships used on its Indian and European routes because of the drop in demand.
The Ennore container terminal is intended to handle 1.5 million containers a year when it opens in 2011. The tender was for a 30-year operating franchise for the port.
In July 2008, Zim announced that the consortium passed the prequalification stage in the tender, along with four other consortia.
Zim's fleet currently includes 104 ships, of which it owns 27 ships and leases 77. The company is expected to report a loss of more than $200 million in 2008.