There has been official confirmation that the 50:50 venture between Mumbai-based Gammon Infrastructure Projects Ltd (GIPL) and Spain's Dragados SPL will construct, develop and operate Mumbai's new $293 million offshore container terminal.
Gammon India Ltd officials announced that the Gammon-Dragados consortium have received the 'Letter of Intent' for the Mumbai Offshore Container Terminal Project.
Hong Kong's Hutchison Port Holdings was originally in the running for operating rights too, but its bid had been complicated by security concerns.
Indian defence officials were worried that the Chinese government might be supporting the operator.
The offshore terminal has been a long-awaited project whose development, according to Mumbai officials, could see the port regain some of its importance as a maritime hub.
Mumbai has been partially eclipsed by the development of its neighbouring Jawaharlal Nehru port (Nhava Sheva) which currently handles close to 50% of the country's sea ports traffic.
The growth of Nhava Sheva over the last 20 years has seen container throughput at Mumbai decline, with Mumbai port handling only 128,000 twenty-foot equivalent units (TEUs) last fiscal year compared to 700,000 TEUs a decade ago. Nhava Sheva's three terminals handled 3.3 million TEUs in the 2006-07 fiscal year.
Mumbai Port officials say its 10 metre draft restriction and a lack of infrastructure had driven shippers to Nhava Sheva. Mumbai port today handles mainly feeder vessels.
The winning Gammon-Dragados venture will manage and operate the existing container terminal at Mumbai port for an initial five years, and develop and manage the 1.2 million TEU capacity offshore terminal consisting of two berths for 30 years.
Gammon India Ltd officials announced that the Gammon-Dragados consortium have received the 'Letter of Intent' for the Mumbai Offshore Container Terminal Project.
Hong Kong's Hutchison Port Holdings was originally in the running for operating rights too, but its bid had been complicated by security concerns.
Indian defence officials were worried that the Chinese government might be supporting the operator.
The offshore terminal has been a long-awaited project whose development, according to Mumbai officials, could see the port regain some of its importance as a maritime hub.
Mumbai has been partially eclipsed by the development of its neighbouring Jawaharlal Nehru port (Nhava Sheva) which currently handles close to 50% of the country's sea ports traffic.
The growth of Nhava Sheva over the last 20 years has seen container throughput at Mumbai decline, with Mumbai port handling only 128,000 twenty-foot equivalent units (TEUs) last fiscal year compared to 700,000 TEUs a decade ago. Nhava Sheva's three terminals handled 3.3 million TEUs in the 2006-07 fiscal year.
Mumbai Port officials say its 10 metre draft restriction and a lack of infrastructure had driven shippers to Nhava Sheva. Mumbai port today handles mainly feeder vessels.
The winning Gammon-Dragados venture will manage and operate the existing container terminal at Mumbai port for an initial five years, and develop and manage the 1.2 million TEU capacity offshore terminal consisting of two berths for 30 years.