Work on Mumbai Port Trust's (MbPT) offshore container terminal project seems to be going nowhere with the government's plans to develop recreational zones and public transport at the same spot of container yards now further delaying the project's revival.
Work on Mumbai Port Trust's (MbPT) offshore container terminal project seems to be going nowhere with the government's plans to develop recreational zones and public transport at the same spot of container yards now further delaying the project's revival.
"Victoria and Princess Docks were reclaimed to create container yards for this new container terminal, but the Mumbai offshore container terminal project is now in limbo. Moreover, the government has decided on having marina and other recreational facilities for Mumbaikars at the same spots of container yards. So, where is the space to stack containers if the project has to be revived?" said an MbPT official.
Secondly, MbPT is also working on 'Port Land Development' project, which would have office complexes, residential areas, open spaces, and recreational zones, etc.
With MbPT now planning to develop marina at Princess Docks, which it had reclaimed some years ago, the earth will now have to be dug up to restore Princess Docks and allow private yachts to berth inside the port.
Towards the shore side of Princess Docks, domestic cruise terminal (for passenger cruises between Mumbai-Goa) and Ro-Pax terminal is being developed, thus leaving behind lesser space for a container yard.
For the last couple of years, MbPT has been utilising incomplete container terminal as Ro-Ro (Roll-on/roll-off) terminal to export vehicles from Mumbai.
The offshore container terminal project has already already been hit by several delays and cost overruns, with the government working towards putting the incomplete project for rebid soon. However, the rebidding process has been punctuated by the ministry.
"The plan is under review by the ministry and unlike earlier it cannot be said when this project will be put up for rebidding," said an offical with Ministry of Shipping to DNA Money.
A year ago, MbPT had finalised rebidding plans and escalated the same for a formal nod from the ministry, which was expected in a couple of months. But, with more than an year gone-by there aren't any positive signs to take the project to its logical conclusion.
As per the revised bid document, which is stalled for now, there is a need to procure and install six cranes, dredging and other ancillary facilities. It also involves executing second phase of the terminal project.
Incorporated in September 2007, Indira Container Terminal Private Ltd (ICTPL) was formed in a joint venture with Dragados SPL of Spain to develop Mumbai Offshore Container Terminal on build-operate-transfer basis in the Mumbai harbour, apart from operating the station container terminal for 30 years.
After a few years, Dragados SPL pulled out of the project and another Spanish firm Noatum Ports, S.L. was roped in.
As an interim measure, from July 5, 2015, MbPT authorities allowed the terminal to used Ro-Ro services/terminal in lieu of revenue. As per the agreement, MbPT is getting 35.064% of the revenue from this operations.
The original plan was to handle 8 lakh containers (twenty-foot equivalent units or TEUs) annually starting from the end of 2010, under the first phase. Overall, the plan was to handle 1 million TEUs.
As per the initial arrangement, Gammon Infrastructure Projects was to invest Rs 862 crore in the project to increase port's capacity while MbPT was to shell out Rs 366 crore. So far, Gammon Infrastructure has infused around Rs 850 crore, but more funds are needed to make the terminal fully operational.
In April 2017, Gammon Infrastructure acquired additional 24% stake in ICTPL from Noatum Ports, thereby increasing its stake to 74% from 50%.
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