Dubai World's default won't hit us, avers CPT Chairman

DP World, a subsidiary of Dubai World, is funding the Rs.2,118-crore (US$451-million) International Container Transshipment Terminal (ICTT) at Vallarpadam near here, which, according to CPT, is ‘fast nearing completion.’

“This is news to me that Dubai World faces financial problems. Here, the work is progressing smoothly as there’s no crisis for funding from DP World,” CPT Chairman N Ramachandran told IANS.

The first phase of the terminal will be completed as per schedule and commissioned April 1 next year, Ramachandran said.  

DP World signed the agreement with CPT in 2005 to develop the terminal.
The company is building the 1,800-metre long, 14.5-metre deep container berth, while the basic infrastructure like roads and railway lines will be built by CPT.

“The developer has informed us that the work for second and final phase will begin after the inauguration of the first phase, and they expect to complete it in two years.”

ICTT, billed as the country’s first global hub terminal, is expected to alter the development map of the state and attract huge investments, government officials said.  

Call for relief package

Meanwhile, in Thiruvananthapuram, Finance Minister Thomas Isaac, on Saturday, contended the state’s economy would be hit hard.

“This is going to hit Middle East which obviously means it is bad news for Kerala,” he said adding that the Centre must provide safety to migrant workers if they returned in large numbers. It should announce a financial aid package to take care of these returnees. “I understand that what happened in Dubai is a real estate collapse and one has to wait and see how they tackle it,” he added.