6 firms evince interest in bunkering terminal at Kochi port

Six companies, both domestic and foreign, have shown interest in setting up a bunkering terminal at Kochi port, said Cochin Port Trust (CPT) chairman N Ramachandran.

The proposed terminal would come on Puthuvype Island, one of the two special economic zones (SEZs) promoted by the CPT. The first-of its kind terminal would cater to international ships passing through Indian waters.

The CPT recently completed the feasibility study and is on course to meet the 2011 project completion date, he said while declining to reveal the names of the companies.

The terminal will have an initial capacity of million tonnes, which can be increased to three million tonnes. “The port would like to award this project to multiple operators,” said Ramachandran.

The project would be awarded on a design, build, finance, operate and transfer basis for a concession period of 30 years.

It may be noted that the country’s three biggest oil refiners – Indian Oil Corporation Ltd, Hindustan Petroleum Corporation Ltd and Bharat Petroleum Corporation Ltd – have their presence at the port as bunker suppliers.

Ramachandran said international ships were not using Indian ports for refuelling since it was costly in India due to various tax and duties.

However, he said, the state government had reduced value added tax (VAT) on bunker products to 0.5 per cent in mid-August from 12.5 per cent previously, which would give a further boost to the project. Moreover, the port is strategically located to cater to international ships.

According to Ramachandran, every day on an average around 1,000 ships pass through Indian waters to and from Southeast Asia, Far East Asia and Far East from Suez Canal.

“These ships don't have to come to Indian waters or to the port. We will supply the fuel in barges wherever the ship is anchored,” he said. These ships currently buy fuel from Singapore, he noted.