Six firms show interest in bunkering terminal at Kochi port

October 15, 2009

cochinporttrust Six companies, both domestic and foreign, have shown interest in setting up a bunkering terminal at Kochi port. The proposed terminal would come up on Puthuvype Island, one of the two special economic zones (SEZs) promoted by the CPT. The initial capacity of the terminal is expected to be of million tonnes and this can be increased to three million tonnes. This is the first-of its kind terminal that would cater to international ships passing through Indian waters. The Cochin Port would like to award this project to multiple operators. The project would be awarded on a design, build, finance, operate and transfer basis for a concession period of 30 years. The country’s three biggest oil refiners – Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd – exist at the port as bunker suppliers.

Everyday around 1,000 ships pass through Indian waters. These ships don’t have to come to Indian waters or to the port. The port would supply the fuel in barges wherever the ship is anchored. Earlier refueling in India was costly due to various taxes and duties and so international ports were not using Indian ports. But now as the State Government has reduced value added tax (VAT) on bunker products to 0.5 per cent from 12.5 per cent previously, this would give a further boost to the project.