This story is from August 21, 2024
Kochi corp awards RoRo vessel contract to Cochin Shipyard
Kochi: After a period of uncertainty, the Kochi corporation has finally awarded the construction of a new RoRo vessel to Cochin Shipyard Limited (CSL). The decision was made during a board meeting of the project funding agency, Cochin Smart Mission Limited (CSML), held in Kochi on Wednesday.The Rs 18 crore project had been on hold amid allegations that CSL was overcharging. "However, the Union and state govts advised the Kochi Corporation and CSML to award the work to CSL, a major public sector undertaking. CSL has agreed to offer discounts in exchange for upfront payment," said a top source with the corporation.Mayor M Anilkumar, a member of the CSML director board, confirmed the decision, emphasizing the superior quality and reliability of CSL's construction. "If the contract is awarded to a private firm, there would be no assurance that the construction quality would match CSL's standards. CSL imports most of its machinery and components to ensure high quality. The Union and state govts took these factors into account when recommending CSL for the project," he explained. The new RoRo vessel will help to avoid service disruptions in case of technical issues or dry docking, he added.The corporation is already facing challenges with the two RoRo vessels previously delivered by CSL, which currently operate between Fort Kochi and Vypeen. These vessels have been plagued with frequent technical issues. One vessel has required repairs eight times this year alone, with each repair taking weeks or even months. "This vessel has been out of service since August 4. Most days, only one vessel is operational, causing a significant hardship for commuters," said Antony Kureethra, councillor from the Fort Kochi division.The corporation has been planning to establish a special purpose vehicle to operate the RoRo vessels since 2018, but delays have prevented its formation. The responsibility of operating the vessels has been entrusted to Kerala Shipping and Inland Navigation Corporation (KSINC)."KSINC has not shared any profits with the corporation. The corporation spent Rs 15 crore to acquire the vessels and build jetties in Vypeen and Fort Kochi. Each year, it spends over Rs 2 crore per vessel on dry docking (mandatory annual repair) alone. Additionally, the corporation has had to pump in crores to address frequent technical issues," said Kureethra, who also serves as the opposition leader in the corporation. "Neither the corporation nor KSINC divulge the exact details regarding revenue and expenditure," he added.
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