Construction work has commenced on a new cruise terminal at India’s Mumbai Port, which is being built with an investment of around Rs3bn ($47m).

The terminal is set to be completed by June next year.

The new facility will comprise a total area of 415,000ft2 and will be able to handle 200 ships and up to 700,000 passengers annually.

It will also replace the port’s current 40,000ft² facility, which received a total of 55 cruise ships carrying approximately 57,000 passengers between November and March last year.

"The new facility will comprise a total area of 415,000ft2 and will be able to handle 200 ships and up to 700,000 passengers annually."

Mumbai Port operator Mumbai Port Trust (MbPT) chairman Sanjay Bhatia was quoted by Indian Express as saying: “We will reduce traffic congestion on roads by starting an 8km sea route.

“Trucks will be transported from JNPT to MbPT on barges and cargo stored in warehouses in the port.

“The new terminal will be the size of the domestic airport terminal and have all the facilities.”

Bhatia also noted that the terminal will be expanded to handle 700 ships and 3.2 million passengers by 2041.

The construction of the facility is set to be carried out in two phases and is expected to serve 200,000 passengers by the end of this year, reported Financial Express.

In addition, MbPT has entered a memorandum of understanding (MoU) with Cochin Shipyard for the operation of a dry dock at Mumbai Port.

The dock is anticipated to be used to repair around 140 to 200 ships every year.