The V O Chidambaranar (VOC) Port Authority has appointed Spain-based engineering consultancy Tecnica Y Proyectos S.A. (TYPSA) to prepare a detailed project report (DPR) for developing a mega container terminal in the port’s outer harbour, marking a renewed effort after two earlier attempts failed due to flawed project structuring.
According to officials, TYPSA will define the project scope and help steer the proposal to the Public-Private Partnership Appraisal Committee (PPPAC) for clearance. The decision reflects the port’s shift from relying on government-backed institutions to engaging an independent international consultant.
Earlier, potential bidders had flagged “unrealistic” cost estimates in the DPR prepared by IIT Madras’ National Technology Centre for Ports, Waterways, and Coasts (NTCPWC), particularly for dredging and breakwater construction. The previous plan pegged the first-phase cost at ₹4,494 crore and the second at ₹2,561 crore, with a Viability Gap Funding (VGF) cap of ₹1,950 crore—about 28% of the total project cost.
Bidders had sought a revision, saying estimates were at least 50% below realistic levels and requested the VGF be raised to 40%, in line with the Vizhinjam port model. Despite these concerns, the PPPAC approved the proposal in November 2023, and the Ministry of Finance later granted in-principle clearance for the ₹1,950-crore VGF.
To attract investors, the port authority offered incentives, including a 10-year revenue-sharing holiday and deferred Minimum Guaranteed Cargo (MGC) obligations starting from the 16th year of operation.
The assignment at VOC Port marks TYPSA’s second major Indian port consultancy in recent months, following its joint venture with Italy’s RINA Consulting SPA for the greenfield Vadhvan Port project in Maharashtra.
