Kochi port has extended wharfage waiver to BPCL-Kochi Refinery for back loading of crude oil at Cochin Oil Terminal for one more year.

The move is seen as a strategic measure to increase the cargo throughput and revenue of the port in the long run. The decision was in response to a request by BPCL-KR that back-loading operations at Kochi port will be economical only through waiver of wharfage at COT.

The company is targeting to back-load about 1 million tonnes of crude oil every year through COT, which at present has a surplus capacity due to the commissioning of the Single Point Mooring (SPM). According to port officials, the back-loading activity at COT will facilitate the utilisation of berth and its infrastructure.

Senior officials at BPCL-KR said that through back-loading operations, the port would benefit from increased revenue with more vessel traffic at COT and enhanced utilisation of port facilities.

Since the commissioning of SPM in December 2007, crude oil totalling 0.6 mmt has been back-loaded through COT.

To enhance profitability by improving the berth occupancy of SPM, which was around 30 per cent initially, BPCL came up with the idea of bringing the combined crude oil for Kochi Refinery and its sister concern Mumbai Refinery (MR) in very large crude carriers (VLCC) and discharging the same at Kochi Port.

The MR cargo is then back-loaded in Large Range I tankers used for bringing Mumbai High crude oil to Kochi in its return voyage.

The major savings to BPCL on account of this is reduction of crude oil transportation cost by avoiding mother vessel’s voyage to Mumbai/Vadinar and subsequent lighterage operation there, BPCL officials said.

(Sourced from BL)