The Kochi Port’s efforts in developing bunkering business (sale of fuel) seem to have started yielding results as the bunker sales this month registered 11,000 tonnes.

This is a major increase from the average sale of 6,000 to 8,000 tonnes in the previous months. This is an indication that shipping line now prefers Kochi to competing South Asian ports in other countries as a bunkering destination, senior port officials said.

They pointed out that the market feedback augurs well for the quality of bunkers supplied from Kochi and the rates are less than those prevailing in Colombo.

The port, of late, has been attempting to develop bunker and ship supplies business at Kochi in an attempt to develop more maritime services in the port area, the officials added.

Public sector companies such as HPCL, Indian Oil Corporation and BPCL-Matrix are the major bunker suppliers in Kochi.

Kerala Government had earlier reduced the VAT on bunkers being sold to foreign-going vessels and this had given a boost to bunker sales.

The government has proposed to reduce the rate of tax on domestic bunker from 15 per cent to 4.5 per cent from April 1. This will further increase the sale of bunkers to coastal vessels and promote coastal carriages of cargo.

According to officials, the lowering of taxes on bunkers has resulted in development of this business which was non-existent earlier.

The Port Trust Board has also offered rebates in vessel-related charges for international vessels calling at the port for only for taking bunkers. The board also offered rebates for barges employed for carrying bunkers to vessels passing through outer channels.

Two oil companies – HPCL and BPCL Matrix – have already deployed high-end barges with certification to proceed to outer seas to supply bunkers even during the monsoon period.

The port has also plans to provide land at Puthuvypeen for tank farms for investors in the bunker business to promote the activity on a larger dimension, the officials added.

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