A Barry councillor says 'serious questions' need to be answered after plans for a new marina failed.
Associated British Ports announced on Wednesday that it was pulling out of the scheme, claiming rising operational costs had made it unviable.
ABP, which runs the Port of Barry, said it could not proceed with the "significant investment" needed for the marina, which forms part of the town's Making Waves project.
But three Plaid Cymru councillors in Barry said the announcement came to them as "no surprise".
Cllr Mark Hooper, who represents the Baruc ward - including Barry waterfront - said: "Since the project was first announced, we have regularly asked questions about its viability and for reassurances about its' future."
"Marina projects across Wales have frequently run into financial difficulties, and yet Labour in the Vale and (the) UK Government in Westminster have time and again dismissed our legitimate concerns."
"Nevertheless, I am surprised by this most recent announcement by ABP. The market testing should have been completed long ago, before vast amount of work and cost was undertaken by public officials and others."
In a statement on Wednesday, ABP said it had reached its "regretful conclusion" following a "thorough market testing exercise" involving third party experts and marina operators.
A spokesperson added: "We remain committed working with all stakeholders regarding the shared ambition of maximising the opportunity of the Levelling Up Fund award from the UK Government."
£19.9 million of funding had been initially awarded by the then-Conservative UK government ahead of last year's general election.

Cllr Hooper added: "We in Barry need answers. Why was so much time and energy sunk into these plans if business partners hadn't already carried out their due diligence?"
"What is going to happen to the rest of the bid proposals if this key part is no longer going ahead? Will Barry still have this £20 million to spend, or will Westminster claw it back?"
"We need these answers quickly."
A former Welsh Conservative leader has also called for clarity on the future of the marina plans.
South Wales Central MS, Andrew RT Davies, said: "This is extremely concerning news. The Marina is a key part of plans to level up Barry and losing this investment is a huge blow."
"I've requested an urgent meeting with the council to discuss the future of the scheme. Action is required to attract new partners and it's vital we have clarity."
Vale of Glamorgan Council says it intends to push ahead with plans for a new watersports centre for Barry's waterfront, which would be run jointly by jointly by the Ocean Watersports Trust and Cardiff & Vale College, who are building a new campus nearby.
Council leader Lis Burnett said: "It will also see the creation of a public park for all to enjoy and will facilitate the delivery of much-needed housing."
"The scheme also includes the upgrading of the Grade 2* listed Dock Office into business incubator space to support local economic growth. We will now focus our attention on delivering these projects and will be seeking the agreement of the UK Government for this amended scheme."
"This council has bold ambitions for Barry and will continue to deliver and promote projects that have a significant positive impact on the town."

Plans are under consideration to build over 200 houses in a sleepy Welsh village
Sanitary disposal bins introduced in men's public toilets following "Bins for Boys" campaign
Officers called to Dinas Powys Woods after young person enters the river
Vale Council signs off placemaking plan for Barry
Plans filed to use Blackweir Fields for a series of live events this summer
Plans filled for controversial housing development in Cowbridge
Cardiff Council pledges to work with new Welsh Government to tackle trouble-plagued hospital
RNLI issues Sully Island safety advice after first call out of the year to the Island
Morio Lounge on course to open at Nell's Point in May
Vale Council appoints specialist contractors to carry out road improvements
Three men jailed for their roles running a drugs line which supplied cocaine in Barry
Police appeal for witnesses after fatal Penarth Road collision
New Beach and country park facilities opened following major investement
RNLI centre at Barry Island welcomes lifeguards back to Whitmore Bay
Severn tidal lagoons progress