Kochi Corporation Weighs Termination of KSINC Ro-Ro Agreement Amid Mounting Financial Concerns
The Kochi Corporation authorities are actively considering the termination of their current agreement with the Kerala Shipping & Inland Navigation Corporation Ltd (KSINC), which manages the crucial Ro-Ro vessel operations in the Fort Kochi–Vypeen sector. This deliberation comes as a direct response to the continuous financial losses that have been burdening the civic body, forcing it to cover substantial financial gaps repeatedly.
Exploring Alternative Operational Models
The corporation is now exploring various alternatives to ensure the sustainability of this essential transportation service. One prominent option under consideration is entrusting the Ro-Ro operations to the Water Metro system, which could potentially bring more efficient management. Another viable alternative being examined is inviting open tenders to select new contractors who can operate the service more transparently and profitably.
Financial Committee Findings and Recommendations
The finance standing committee of the Kochi Corporation, after thoroughly reviewing the audit report on Ro-Ro operations, has concluded that the Fort Kochi–Vypeen service is imposing a significant financial burden on municipal resources. The committee members noted that despite current challenges, the service possesses genuine potential to become profitable if managed with greater efficiency and transparency.
MG Aristotle, a distinguished member of the finance standing committee, provided crucial insights into the situation. "The auditors discovered several discrepancies in the accounts submitted by KSINC regarding both revenue and expenditure figures. These inconsistencies have compelled the corporation to allocate substantial funds to cover operational losses. Furthermore, maintenance costs, including the expensive annual dry docking procedures, remain exceptionally high and are currently being borne entirely by the civic body," Aristotle explained.
Aristotle further clarified that the finance standing committee has formally recommended that the council make a decisive determination about whether to continue operations with KSINC or to initiate open tenders. This recommendation suggests calling an all-party meeting first to establish consensus before proceeding with any major decisions.
Operational Challenges and Infrastructure Concerns
Adding complexity to an already difficult situation, one of the two Ro-Ro vessels operating in the sector is scheduled to undergo dry docking in February, which will leave only a single vessel available for service. This reduction in capacity is expected to create significant operational challenges for daily commuters.
Although the corporation had previously contracted Cochin Shipyard Limited (CSL) to construct a third Ro-Ro vessel to enhance service capacity, the delivery date remains uncertain and unclear. The corporation had allocated approximately Rs 18 crore for this construction project, with the contract officially signed on November 13, 2024, stipulating an 18-month timeline for completion.
Originally, the corporation was supposed to establish a special purpose vehicle (SPV) specifically designed to operate the Ro-Ro service. However, due to persistent delays in forming this SPV, the operational responsibility was temporarily assigned to KSINC, creating the current problematic arrangement.
Safety Issues and Commuter Challenges
Operational issues have recently escalated to include serious safety concerns. In a concerning incident, one of the Ro-Ro vessels collided with a barge while crossing the navigation channel in Fort Kochi on Friday. Fortunately, no injuries were reported from this accident, but it highlighted potential safety vulnerabilities.
Antony Kureethara, the former councillor from Fort Kochi, expressed additional concerns about infrastructure conditions. "The Ro-Ro jetty pavement is currently in a dilapidated and unsafe condition, requiring immediate attention and repair," Kureethara stated.
Kureethara further pointed out significant commuter challenges that have emerged from the current operational schedule. Of the two vessels, one ceases operations at 8 pm, leading to severe overcrowding on the remaining vessel, which continues service until 10 pm. "We have formally requested the corporation to extend the service hours of the second Ro-Ro vessel to 10 pm as well, to better manage the evening rush and improve commuter safety," he added, emphasizing the need for immediate operational adjustments.
