Asia/Pacific News
VAT Cut Boosts Bunkering at Cochin Port
Bunkering at Cochin Port in Kochi, India has been on the rise after the reduction of value added tax (VAT) rates there to 0.5 percent, the Hindu Business Line reports.
Port Trust Chairman Paul Antony said the port is focused on improving its position as a bunkering destination, with investments including an exclusive jetty to be built by December 2015 and a multi-purpose liquid terminal for bunkering services.
Hindustan Petroleum Corporation Limited (HPCL), which recently began supplying bunkers at the port, said Kochi's proximity to international shipping routes means there is huge potential for bunkering services there.
Currently, around 1.6 million tonnes per annum (mtpa) were said to be sold at the port, but officials say Cochin has the potential to be one of the world's largest bunkering hubs at around 20 mtpa.
About 40,000 ships call at Indian ports each year, providing a strong market for fuel sales, according to those in the local industry.
Along with infrastructure and process improvements to promote bunkering, Cochin Port is adding a new bunkering vessel that can operate during monsoon season and at night more easily than the existing barges.
