Ro-Ro losses push Kochi corporation to explore alternatives

Kochi: Corporation authorities are considering terminating the agreement with (Kerala Shipping & Inland Navigation Corporation Ltd (KSINC), which operates the Ro-Ro vessels in the Fort Kochi–Vypeen sector, citing continuous losses that force the civic body to cover huge financial gaps. The corporation is exploring alternatives, including entrusting RoRo operations to the Water Metro or inviting open tenders to select new contractors for the service.The finance standing committee of Kochi corporation, which reviewed the audit report on Ro-Ro operations, found that the Fort Kochi–Vypeen service is causing a substantial financial burden. The committee noted that the service has the potential to be profitable if run efficiently and transparently. MG Aristotle, member of the finance standing committee, said, "The auditors found discrepancies in the accounts submitted by KSINC regarding revenue and expenditure. The corporation is compelled to pay significant sums to cover losses. Maintenance costs, including annual dry docking, are very high and are being borne by the civic body."Aristotle said the finance standing committee has recommended that the council decide whether to continue operations with KSINC or invite open tenders after calling an all-party meeting to reach a consensus.Adding to operational challenges, one of the two Ro-Ro vessels in the sector will undergo dry docking in Feb, leaving only a single vessel for service. Although the corporation contracted Cochin Shipyard Limited (CSL) to build a third Ro-Ro vessel, its delivery date remains uncertain. The corporation allocated Rs 18 crore for the construction and the contract, signed on Nov 13, 2024, stipulates an 18-month timeline for completion.Initially, the corporation was supposed to create a special purpose vehicle (SPV) to operate the Ro-Ro service. Due to delays in forming the SPV, the responsibility was assigned to KSINC.Operational issues have also raised safety concerns. One of the Ro-Ro vessels collided with a barge while crossing the navigation channel in Fort Kochi on Friday. Antony Kureethara, former councillor from Fort Kochi, said, "Fortunately, no one was injured. However, the Ro-Ro jetty pavement is in a dilapidated condition."Kureethara further pointed out commuter challenges, stating that of the two vessels, one stops services at 8pm, leading to overcrowding on the remaining vessel, which continues until 10pm. "We have requested the corporation to extend the service hours of the second Ro-Ro to 10pm as well, to manage the rush," he added.