Mumbai offshore box terminal may be delayed

News was prepared under the information support of Online Daily Newspaper on Hellenic and international Shipping "Hellenic Shipping News".

31 Jan 2010

The Rs 1,228-crore offshore container terminal at the Mumbai port is expected to be delayed at least by two years. The foreign partner in the consortium setting up the terminal quit selling its stake to the Indian promoter. The promoters will now have to look for a partner with experience in running port terminal.
The Indira Container Terminal Private Ltd is the special purpose vehicle incorporated by Gammon Infrastructure Projects Ltd-led consortium, that had won the right to develop and operate 1.2 million twenty-foot equivalent units (teus) capacity offshore container terminal on a 30-year build-operate-transfer basis in December 2007.
Stake sale
In December 2009, the Spanish company Dragados, the foreign partner in the consortium, decided to sell its stake as part of its global restructuring plan. Gammon Infra had agreed to acquire the firm's 50 per cent stake in ICTPL in two phases.
According to the agreement, Gammon would be buying 24 per cent stake in ICTPL by March 2010 and a further 26 per cent equity stake after three years post the commencement of commercial operations of the Rs1,200-crore offshore container terminal.
According to Mumbai port officials, the first phase is expected to be completed in 2012 as against December 2010.
Joint venture
They said that Gammon does not have expertise in managing container terminals, port handling and any kind of maritime operations. “As a result, they are currently in discussions with major port players to sign a joint venture,” said a senior official.
Mr Parvez Umrigar, Managing Director, Gammon Infrastructure, however, said the company is not currently looking for a partner for the project but in future, may invite equity either on contract basis or strategic investment.
The estimated project cost is about Rs 800 crore in the initial phase of three years and another Rs 400 crore at a later stage.

Source: The Hindu Business Line