The Cochin Port Trust (CPT) has invited global tenders for setting up a multi-user liquid terminal at Puthuvype near the port. The proposed terminal would be used for bunkering and also to handle import of LPG.
CPT has appointed Feedback Ventures as the transaction adviser for the project, which is estimated to cost Rs 184.22 crore. The project will be awarded on a design, build, finance, operate and transfer (DBFOT) basis for a concession period of 30 years. After construction of the terminal, separate global tenders will be invited for operation, a port press release said.
Meanwhile, the port has carried out the feasibility study for the bunkering terminal with the help of Indian Ports Association. The import of LPG would be handled at the terminal of Indian Oil Corporation being set up at Puthuvype.
Bunkering (fuelling) of ships has been traditionally very expensive in India because of the incidence of high taxation as compared with international levels. Due to this, ships visiting the Indian ports do not generally buy fuel from here.
The port has two special economic zones (SEZs) at Vallarpadam and Puthuvype. This would enable the port to import fuel without the incidence of Customs and other duties and the proposed terminal would be able to sell bunkers to foreign-bound ships at internationally competitive prices. Sale of bunkers to these ships would be treated as export. The Kerala government has already approved 0.5 percent VAT on the sale of bunkers from this terminal.
Source : Business Standard