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V. Sajeev Kumar

Kochi, Sept. 22 The Board of Trustees of the Kochi Port has approved the proposal of BPCL-Kochi Refinery for waiver of wharfage on crude back-loading at the Cochin Oil Terminal (COT) for a period of one year.

This, according to senior port officials, is a strategic measure to increase the cargo throughput as well as revenue in the long run since there has been a reduction in the number of vessels calling at COT due to the commissioning of single point mooring (SPM) at the refinery.

The COT berth has remained more or less idle in the recent period and it can be utilised to a certain extent through this operation, officials said.

BPCL-Kochi Refinery had submitted the proposal as the cargo meant for back loading had already suffered a wharfage of Rs 25 a tonne at SPM and the port should not levy wharfage again for the same cargo at COT.

The port officials pointed out that the arrangement would bring an additional throughput of 1-2 million tonnes and ensure revenue to the tune of Rs 2.5-5 crore towards wharfage and vessel related charges.

The proposal would also enable the port to get some additional cargo, which would otherwise not come to the port. It is pointed out that the port is incurring Rs 2.21 crore a year for operation and maintenance of the facilities at COT.

There has been a drastic drop in the number of vessels calling at the terminal due to the commissioning of SPM. As against a monthly average of 10 vessels that visited COT, the number has come down to 4 a month since December 2007.

If this concession was offered, there is a possibility of some of the cargo meant for Mumbai and New Mangalore ports passing through Kochi.

Besides, the port and the refinery would benefit from the arrangements, the officials added.

The refinery, in its proposal, pointed out that they had entered into a similar agreement with the Shipping Corporation of India for similar operations in Mumbai at an all-inclusive charge of Rs 43 a tonne.

Such operations in Kochi would render utilisation of COT in the post-SPM scenario and also assure a throughput of at least 1 million tonne to the port.

The company is also trying to strike deals with Mangalore Refineries for utilising this facility and if it succeeds, would bring more volumes to the cargo throughput to Kochi and thereby create a win-win situation for both the organisations.

More Stories on : Shipping/Ports | Petroleum

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