Kochi Corporation Moves to Scrap KSINC Ro-Ro Agreement After Audit Reveals Financial Mismanagement
In a significant development, the Kochi Corporation council, during its meeting on Thursday, has authorized officials from the local body's engineering wing to seek legal opinion regarding the scrapping of the agreement with the Kerala Shipping and Inland Navigation Corporation (KSINC) for operating Ro-Ro (Roll-on/Roll-off) services in the Fort Kochi-Vypeen sector. This decision comes as the corporation plans to entrust a new agency with the operations of its Ro-Ro vessels, following an audit report that uncovered mismatches in the accounts submitted by KSINC.
Audit Findings Prompt Legal Review and All-Party Meeting
Mayor V K Minimol has directed officials to thoroughly examine the legal implications of terminating the agreement with KSINC. The council will hold an all-party meeting to discuss a detailed report to be prepared by the corporation secretary on this matter. Opposition leader V A Sreejith expressed concerns, stating that entrusting private firms with the operations of Ro-Ro services might not be a better alternative, highlighting the need for a transparent and efficient system.
The audit report revealed that KSINC is continuously generating losses, forcing the local body to allocate substantial funds to cover these deficits. Despite the sector having enough potential for profit generation, the current services are causing a significant financial burden on the civic body due to inefficiencies and lack of transparency.
Exploring New Operational Models for Ro-Ro Services
Corporation authorities are actively exploring various possibilities to revamp the Ro-Ro services. Options under consideration include:
- Entrusting the services to Water Metro, which could leverage existing infrastructure and expertise.
- Inviting open tenders to identify suitable contractors who can operate the vessels efficiently and profitably.
This move aims to ensure that the Ro-Ro operations are conducted in a manner that maximizes revenue and serves the public effectively, rather than draining municipal resources.
Immediate Maintenance Needs and Future Vessel Delivery
In addition to the operational changes, both vessels currently plying in the Fort Kochi-Vypeen sector require immediate dry docking, a maintenance procedure that has been overdue since last year. This urgent need underscores the deteriorating condition of the existing fleet and the necessity for timely upkeep to ensure safety and reliability.
Meanwhile, the corporation had earlier entrusted Cochin Shipyard Limited (CSL) with the construction of a third Ro-Ro vessel on November 13, 2024, allocating Rs 18 crore for the project. However, local body authorities remain uncertain about the delivery timeline, as per the agreement with CSL, which stipulates completion within 18 months. This uncertainty adds to the challenges in planning for future service enhancements.
Financial Standing Committee's Recommendations
The corporation's finance standing committee, which examined the audit report on Ro-Ro services, emphasized that with proper management, the sector could become profitable. The committee's findings have been instrumental in pushing for a review of the current agreement and exploring alternative operational models to alleviate the financial strain on the civic body.
As the Kochi Corporation moves forward with seeking legal opinion and discussing alternatives, the focus remains on transforming the Ro-Ro services into a sustainable and efficient public transport option for the Fort Kochi-Vypeen sector, ensuring better utilization of public funds and improved service delivery for residents.
