PORTLAND (AP) – After years of delays, construction is about to begin on the $20.7 million Ocean Gateway passenger ship terminal, a key element in the redevelopment of the city’s eastern waterfront.

Planning for the project began in the late 1990s, but it was set back by cost overruns and a failed first round of construction bids.

Demolition work on the site has finally begun, setting the stage for a groundbreaking ceremony today to mark the start of construction. The contract with Reed & Reed of Woolwich specifies that the work be completed in September 2007.

In addition to serving the city’s substantial cruise ship traffic, the terminal could also be used by The Cat, the high-speed ferry that now operates between Bar Harbor and Yarmouth, Nova Scotia. The ferry operator is considering adding a route between Portland and Yarmouth.

Passengers using Ocean Gateway will pass through security at a 5,500-square-foot receiving station and into a breezeway leading to the 17,000-square-foot terminal building highlighted by a floor-to-ceiling glass wall that offers views of the harbor.

Some of the funding for Ocean Gateway was approved by voters in 1999 as part of a statewide transportation bond issue. In total, the project involves $3.6 million from the city, $4.5 million from the federal government and $12.6 million from the state.

Two other major projects along the eastern waterfront are scheduled to begin next year. The $110 million Westin Hotel and Residences project will include a 230-room hotel, condominiums, retail space and parking at the site of the Jordan’s Meats plant. The $75 million Riverwalk project includes a 750-space parking garage, an office building, a 50-room boutique hotel and condominiums.

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