10th Mar 2016 10:25
LONDON (Alliance News) - SKIL Ports & Logistics Ltd Thursday warned some of the work streams at its project in Navi Mumbai in India will take longer than originally expected, but said good progress continues to be made at the site.
The news will not be welcomed by shareholders as the project has already been pushed back following issues with the workforce of the contractors constructing the project last year.
The development of the modern port and logistics facility at Karanja Creek in the Raigad District of Maharashtra is SKIL Port's first ever project, being built over 200 acres of land with a sea frontage of approximately 1,000 meters.
Originally, SKIL Ports guided the project would be operational by the end of 2015, but pushed that back to the first half of 2016 after the contractor workforce at the Navi Mumbai facility walked off site due to local community issues.
On Thursday, SKIL Ports said the project will not be operational until December, which will cause further uncertainty as SKIL Ports also said it recognised the magnitude of the project could see the schedule change again, creating concerns that the project could be pushed into 2017.
If completed before the end of this year as envisaged, the project will be a year behind schedule, and even further behind if that creeps into next year.
SKIL Ports said it revised its timetable after gathering more data that allowed it to gauge progress and schedule the overall milestones at the project following "uninterrupted" work for a "number of months."
"SKIL Ports & Logistics remains satisfied with progress. However, it has become apparent that certain work streams will take longer than previously scheduled," it said n a statement.
"In particular, a change to the design of the piling gantry had to be made whilst on site and there has been a knock on effect of this on other work streams. In addition, a new configuration had to be made for the batching plant and, overall, a more conservative view is being taken of the timetable," the company added.
SKIL Ports shares were down 11% to 68.38 pence per share on Thursday.
By Joshua Warner; [email protected]; @JoshAlliance
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