Kochi Port registers increase in bunkering sale

Kochi Port has registered a bunkering sale of about 11,000 tonnes of fuel to ships this month.
This is a major increase from the average sale of 6,000 tonnes to 8,000 tonnes in the previous month, a port press release said today.
This was an indication that shipping line now prefer Kochi more and more as a bunkering destination in comparison with competing South Asian Ports such as Colombo as the rates and quality here were lesser, the release said.
HPCL, BPCL-Matrix and IOCL are the major bunker suppliers here. The state government had earlier reduced the VAT on bunkers being sold to foreign-going vessels. This had given a big boost to bunker sales, it said.

In the recent budget proposals, the state government has further proposed reduction in rate of tax of domestic bunker from 15 per cent to 4.5 per cent from April 1 this year. This will further increase the sale of bunkers to coastal vessels and promote coastal carriages of cargo.
The port was proposing to provide land at Puthuvypeen for tank farms for investors in the bunker business to promote the activity on a larger dimension.