KSINC to foray into bunkering business

KOCHI: The Kerala Shipping and Inland Navigation Corporation (KSINC) will soon foray into the field of outer bunkering to supply fuel to the ships in the outer harbour and international shipping channel off Kochi.The KSINC will forge a tie-up with a chartered barge from Ocean Bunkers Private, while Bharat Petroleum Corporation Limited (BPCL) has already expressed its interest in co-operating with the KSINC in this venture.“The KSINC is venturing into the field as part of its expansion programme in this unexplored area. Now, most of the bunkering services are done in Sri Lanka, Singapore and in Dubai. Recently, the State Government had reduced the value Added tax (VAT) on furnace oil by 0.5 per cent as part of its efforts to encourage bunker supplies through Cochin Port. By this amendment of the KVAT rules, Kochi can offer products at prices comparatively lower than Colombo, which is the nearest major bunkering port,” KSINC chairman and managing director Tom Jose said. He said that being the closest port in India to the International Shipping Channel, Kochi has tremendous potential in developing bunker business and becoming the largest bunkering port in India.“KSINC has started the initiative to boost  its business. The supplies have to be made at international market prices. Our oil companies were not venturing into the field as there were no barging facilities available in Kochi,” Jose said.The vessel, M T Vidhylakshmi, with a capacity of 1,000 MT had arrived in Kochi last week and it would be berthed for its maiden loading on March 5, 2012. “By bringing an IRS Class Barge of 1,000 MT with an International Load Line Certificate, which is a large and better supply vessel, coupled with lower cost of fuel, the KSINC hopes to make Kochi a bunkering Port,” he added.