KOCHI: In an attempt to curb the rising cost of dredging for maintaining the shipping channels, the Cochin Port Trust is planning to award the dredging contract to a company for a period of 20 years on a build operate and transfer (BOT) basis. The port management has decided to engage Kochi-based consultancy firm KITCO to conduct a feasibility study in this regard.According to the plan, the company which will be awarded the contract has to acquire a dredger, maintain the channel and hand it over to the port management once the contract ends.“We are thinking of various possibilities to reduce the expense. We can have a clear picture of this proposal only after conducting a feasibility study,” said Cochin Port Trust secretary Cyril C George.The present dredging contract with Dredging Corporation of India (DCI) is for three years (from 2011-12 to 2013-14). The port had approached the Shipping Ministry seeking an assistance to purchase a dredger to carry out the maintenance dredging in the channel considering the incurring expenditure. However, the Ministry rejected the proposal and asked the management to look for a PPP model.With huge expenditure for dredging and fall in the volume of cargo, the port is heading for a major crisis. The port has to spend an additional amount this year for dredging after the International Container Transshipment Terminal (ICTT) was commissioned. At the same time, the port is yet to get a considerable income from ICTT.“Though the channels are used by the Navy, the Coast Guard, Cochin Shipyard and the Cochin Refinery, only the CPT is bearing the whole expense for dredging. However, promoters of the proposed LNG Terminal have agreed to provide a share of the cost once they start operations,” said a key official of the port.
Comments
0 comment