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

The Kochi Corporation will examine the legal scope of terminating its agreement with the Kerala Shipping and Inland Navigation Corporation (KSINC) and consider entrusting roll-on roll-off (ro-ro) operations to Kochi Metro Rail Limited (KMRL) or another agency, either through competitive bidding or by forming a special purpose vehicle (SPV).

Mayor V.K. Minimol has directed the Corporation’s executive engineer to submit a report within a month, following which an all-party meeting will deliberate on the matter. She said KSINC officials should be also be invited to the meeting. The idea is to take a decision by the time a third ro-ro joins the fleet and the existing two undergo dry docking, Ms. Minimol said.

The move comes after councillors across party lines voiced sharp criticism of the KSINC over mounting losses and urged the Corporation to identify a new operator to ease its financial burden.

United Democratic Front (UDF) councillor Henry Austin argued that recurring operational losses had become a major liability and stressed the need for a no-loss model at the earliest, pointing to the Water Metro’s profitability from inception. “An SPV without addressing recurrent losses through realistic fare revision, especially in the context of rising fuel prices, will be of little use. Since even drinking water supply is being privatised, why hesitate with ro-ro services?” he asked.

Councillor P.V. Chandran recalled that a chartered accountant appointed by the previous council had found the KSINC’s accounts problematic and pressed for an early decision to stem further losses.

Left Democratic Front (LDF) Parliamentary Party leader V.A. Sreejith questioned whether the cited losses pertained solely to ro-ro services or also included the boat service that had remained defunct since 2021. He cautioned that some public services, despite incurring losses, could not be privatised, citing the KSRTC and the KSEB as examples.

BJP councillor Priya Prashanth demanded not only the termination of the agreement but also action against the KSINC for the alleged discrepancies. She noted that the services had shown profitability when the Corporation had deployed its officials aboard ro-ro ferries for 10 days. “The SPV model is preferable as it allows the Corporation to retain control while engaging technical experts. Initial steps have already been taken in that direction during the previous council, and we can pick up from there,” she said.

UDF councillor M.G. Aristotle accused the KSINC of “robbing the Corporation” while also demanding an additional ₹87 lakh over and above operational losses. He cited the chartered accountant’s bid to insinuate that the KSINC maintained two sets of accounts related to ro-ro services and called for a Vigilance probe. “The Corporation must also explore legal avenues to reclaim its ro-ro ferries,” he added.