Industry observers feel that Indira Container Terminal (ICTPL) may not be able to complete the proposed container terminal project at Mumbai Port Trust (MbPT) by December.
It may be noted that the union shipping ministry set December 2013 as deadline for the project, which has been delayed by more than six years after the agreement was first signed in 2007.
The shipping ministry had to intervene and set a deadline because the 1,400 crore project was to be commissioned in 2010, but the build, operate and transfer operator and dredging contractor delayed work on the project.
The terminal project is considered to be unviable because there has been a significant drop in container cargo to Mumbai port as shippers prefer ports like JNPT, Mundra and Pipavav on the west coast. Infrastructure constraints also add to the woes of the project.
The project is being executed by Indira Container Terminal (ICTPL), a joint venture between Gammon India and Dragados of Spain.
There is a fundamental problem with the project and it is unviable. There's no infrastructure to meet the demands of a container terminal at the port and evacuation of cargo from the port will be a problem as the rail and road connectivity is a challenge, an industry observer is quoted as saying.
Some reports indicate that Gammon may exit the project since it is losing money.