Seems to be a mismatch between docker-compose.yml and where the properties files are copied to in the portal_vm_init.sh

portal_vm_init.sh copies them to /PROJECT/OpenSource/UbuntuEP/etc but docker-compose.yml is getting them from 

${PROPS_DIR}/ECOMPSDKAPP/portal.properties

PROPS_DIR=/PROJECT/OpenSource/UbuntuEP/properties

This results in the error.

ERROR: for portal-apps Cannot start service portal-apps: oci runtime error: container_linux.go:247: starting container process caused "process_linux.go:359: container init caused \"rootfs_linux.go:54: mounting \\\"/PROJECT/OpenSource/UbuntuEP/properties/ECOMPPORTALAPP/portal.properties\\\" to rootfs \\\"/var/lib/docker/aufs/mnt/a4f068327b7c4594c50d7d6aa0f8057e22cfa45ac9bc01bb018be9152f6e5ea8\\\" at \\\"/var/lib/docker/aufs/mnt/a4f068327b7c4594c50d7d6aa0f8057e22cfa45ac9bc01bb018be9152f6e5ea8/opt/apache-tomcat-8.0.37/webapps/ECOMPPORTAL/WEB-INF/classes/portal.properties\\\" caused \\\"not a directory\\\"\""
: Are you trying to mount a directory onto a file (or vice-versa)? Check if the specified host path exists and is the expected type
ERROR: Encountered errors while bringing up the project.

I just corrected the directories and the container came up.