Kochi Corporation May End Ro-Ro Ferry Contract with KSINC in 2024

Kochi's Ro-Ro ferry service is losing money. The Corporation might change who runs it, affecting thousands of daily commuters.
By Newsroom | Transport, Kochi |

The Kochi Corporation is contemplating a significant overhaul of its Roll-on Roll-off (Ro-Ro) ferry service, specifically the vital Fort Kochi–Vypeen route, due to persistent financial losses and operational challenges. Authorities are reportedly considering terminating the contract with the current operator, Kerala Shipping & Inland Navigation Corporation Ltd (KSINC), and exploring alternatives such as entrusting the service to the Kochi Water Metro (KMRL) or issuing open tenders for new operators.

The move comes after councillors from across party lines voiced considerable criticism regarding KSINC's management, citing mounting losses and a substantial financial burden on the civic body. An audit report reviewing the Ro-Ro operations has highlighted the Fort Kochi–Vypeen service as a major drain on resources.

Financial Woes and Operational Strains

KSINC attributes its financial difficulties to stagnant fares, which reportedly date back to the preceding "jhankar" services, while fuel costs have nearly doubled since the Ro-Ro service's inception. The current fare structure charges ₹3 for passengers, ₹10 for two-wheelers, ₹40–₹50 for small four-wheelers, and ₹55–₹65 for larger four-wheelers. A KSINC source also noted that a significant portion of the Ro-Ro components are imported and incur high costs.

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Kochi Corporation weighs fresh options as KSINC faces criticism over ro-ro service - 1

Furthermore, the service has been plagued by operational inefficiencies and safety concerns. This includes a recent incident where one of the Ro-Ro vessels collided with a barge while navigating the Fort Kochi channel. Compounding the capacity issues, one of the two operational vessels was scheduled to enter dry dock in February, effectively halving the service capacity.

Governance Gaps and Delayed Expansion

The future of the Ro-Ro service appears further complicated by delays in expanding its fleet. While the Corporation had initially planned to establish a special purpose vehicle (SPV) for the service's operation, this plan was reportedly shelved due to delays, leading to operations defaulting to KSINC. A third Ro-Ro vessel, contracted with Cochin Shipyard Limited (CSL) for ₹18 crore with an 18-month timeline starting November 2024, faces an uncertain delivery date.

Calls for greater transparency have also emerged, with accusations that KSINC might be maintaining dual sets of accounts for the Ro-Ro services. This has prompted demands for a Vigilance probe into the matter.

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A History of Shifting Plans

The current considerations by the Kochi Corporation signal a departure from earlier plans. The initial vision for the Ro-Ro service involved the creation of a dedicated SPV. However, with KSINC facing significant criticism and financial strain, alongside operational uncertainties and safety issues, the Corporation is now actively seeking alternative management models. An all-party meeting has been suggested to deliberate on the path forward, with options ranging from maintaining the status quo with KSINC to opening the service up to broader tenders, potentially including the KMRL.

Frequently Asked Questions

Q: Why is the Kochi Corporation thinking about changing the Ro-Ro ferry service?
The Kochi Corporation is thinking about changing the Ro-Ro ferry service because it is losing a lot of money and has problems with how it works. They are unhappy with the current operator, KSINC.
Q: What problems does the Ro-Ro ferry service have?
The service has money problems because fares are too low and fuel costs are too high. There have also been accidents, like a ship hitting a barge, and one of the two boats needs repairs soon.
Q: What are the possible new plans for the Ro-Ro ferry service in Kochi?
The Corporation might stop the contract with KSINC. They could give the service to Kochi Water Metro or ask other companies to bid for the job through open tenders.
Q: When will a decision be made about the Ro-Ro ferry service in Kochi?
A decision has not been made yet. The Corporation is looking at options and may hold a meeting with all political parties to discuss the future of the service.
Q: Who will be affected if the Ro-Ro ferry service changes in Kochi?
People who use the Fort Kochi-Vypeen ferry will be affected. They might see changes in service reliability, cost, or who operates the boats.