Gammon Infrastructure Projects, the infrastructure arm of the debt-laden Gammon India, informed the BSE on Monday that Indira Container Terminal (ICTPL), one of the joint venture SPV of the company, has accepted the Mumbai Port Trust (MbPT) proposal for an alternative use of the offshore container terminal for roll-on/roll-off (RORO) operations.
The facility will be given to the importers and exporters of automobiles and self-propelled equipment for a year from the date of operation, the BSE filing said.
Sources close to the development told FE that Gammon has got a better deal from what MbPT was offering earlier. Mumbai Port has agreed to offer a higher revenue share to ICTPL at 45%, while the remaining 55% will be MbPT’s share in the operations. MbPT was earlier proposing that 70% from RORO operations will be their share, while Gammon should take 30%.
FE had reported on May 19 that MbPT had given approval to Gammon to start RORO operations and that the company was negotiating the revenue-share structure with the port.
With the volumes currently available, the total revenues from the operations could be R85-90 crore for the nine months remaining in the current fiscal, sources said. However, Gammon will be looking to grow the revenues from here. “Till now, the RORO facility from the port was being shared with other cargo like coal, steel, etc, which was leading to long waiting periods for RORO ships and a longer turnaround time. Now, with a facility exclusively for these operations, there would be some growth in business,” a source said.
Gammon will also spend around R4 crore in refurbishing the facilities at the ICTPL to make them conducive for RORO operations, which are expected to commence from August. Volkswagen, Maruti and Tata are some of the companies already using the facility.
Meanwhile, MbPT and Gammon are still in talks to resolve the issues surrounding the use of ICTPL as a container terminal.