Concerns mount over VOC port project cost estimates
26 Mar 2024
2 Min Read
CW Team
Potential bidders express concerns regarding VOC Port's outer harbour box terminal project cost estimates. The estimated investment is Rs 70,559.5 million for a four million twenty-foot equivalent units (TEUs) capacity container terminal. Bidders call for re-evaluating the project's cost, which they deem to be at least 50% lower than realistic estimates.
The National Technology Centre for Ports, Waterways and Coasts (NTCPWC) prepared the Detailed Project Report (DPR) for the project, estimating Rs 6,984.5 million for breakwater construction and Rs 12,335.1 million for dredging in the basin and outer harbour channel for the first phase. Concerns arise regarding the accuracy of these estimates.
Port expert Devdatta Bose highlights discrepancies in the estimated costs, particularly for breakwater construction and dredging. He suggests a higher cost analysis, indicating potential underestimation by NTCPWC.
The port authority defends the estimates, citing the methodology used and the proximity of material sources for construction. They maintain that the estimates were submitted for approval in January 2023.
Potential bidders propose revisiting cost estimates or increasing viability gap funding (VGF) to 50% to ensure project viability. However, the port authority stands by its estimates, expressing confidence in the methodology used.
Secretary TK Ramachandran assures flexibility in revisiting project terms if necessary. He encourages potential developers to approach the project with a positive mindset, emphasizing its viability and market-driven tariffs.
Suggestions are made to enhance the project's attractiveness, including allocating land for a free trade zone. These suggestions are acknowledged for further consideration.
Potential bidders express concerns regarding VOC Port's outer harbour box terminal project cost estimates. The estimated investment is Rs 70,559.5 million for a four million twenty-foot equivalent units (TEUs) capacity container terminal. Bidders call for re-evaluating the project's cost, which they deem to be at least 50% lower than realistic estimates.
The National Technology Centre for Ports, Waterways and Coasts (NTCPWC) prepared the Detailed Project Report (DPR) for the project, estimating Rs 6,984.5 million for breakwater construction and Rs 12,335.1 million for dredging in the basin and outer harbour channel for the first phase. Concerns arise regarding the accuracy of these estimates.
Port expert Devdatta Bose highlights discrepancies in the estimated costs, particularly for breakwater construction and dredging. He suggests a higher cost analysis, indicating potential underestimation by NTCPWC.
The port authority defends the estimates, citing the methodology used and the proximity of material sources for construction. They maintain that the estimates were submitted for approval in January 2023.
Potential bidders propose revisiting cost estimates or increasing viability gap funding (VGF) to 50% to ensure project viability. However, the port authority stands by its estimates, expressing confidence in the methodology used.
Secretary TK Ramachandran assures flexibility in revisiting project terms if necessary. He encourages potential developers to approach the project with a positive mindset, emphasizing its viability and market-driven tariffs.
Suggestions are made to enhance the project's attractiveness, including allocating land for a free trade zone. These suggestions are acknowledged for further consideration.
Next Story
3i Infotech Reports Rs 7.25 Bn Revenue for FY25
3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..
Next Story
Emerald Finance Joins Baya PTE to Boost SME Bill Discounting
Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..
Next Story
BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25
BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..