07-01-2019

Chennai Port drives on Hyundai Motor for volume

Despite losing its leading position in car exports to Kamarajar Port some years back, Chennai Port Trust (ChPT) is showing some signs of revival by posting a 22% increase during 2018.

“We have been relying on Hyundai Motor India Ltd. (HMIL) for export volume and revenue generation,” said a ChPT official. “We came out with aggressive pricing and that also helped us to improve volume,” he said.

Renews pact
Recently, HMIL renewed its export pact with ChPT for the next 10 years with a minimum volume of 50,000 cars per annum.

“This is due to the aggressive action plan initiated by our chairman to tackle fierce competition from nearby ports. Car exports volume from ChPT have been on the rise for the last two years,” he added.

From January to December 2018, ChPT exported almost 1.35 lakh Hyundai cars through 36 vessels against 1.10 lakh cars handled in the corresponding year-earlier period. However, this excludes Hyundai cars exported through containers in knocked-down condition.

Comparatively, export volume at Kamarajar Port stood at 1.79 lakh cars against 1.96 lakh cars for 2017. The drop in volume had been attributed to Nissan as it started producing Micra from France for Europe market instead of Chennai.

South Korean major Hyundai has been using ChPT for car exports for the past 17 years and currently, it is the major exporter and biggest revenue contributor to the port. Other car manufacturers such as Nissan, Renault, Ford, Toyota, Daimler and Volvo have moved to Kamarajar Port.

During 2018, Ford used all the three major ports. It exported 86,000 cars through Kamarajar Port, over 4,000 via Adani Kattupalli Port and 15 cars through ChPT. Nissan volume at ChPT had come down drastically from 179 in 2017 to three during 2018. The combined export of Nissan and Renault from Kamarjar Port was 74,400 cars.

“We have been using ChPT for four reasons — its proximity, adequate parking space, shorter travelling distance from the parking area to the vessel and availability of pre-berthing space. It also has rail connectivity. Since, the travelling distance is shorter, the damage to under carriage will be minimal. At a time, we can park up to 6,500 cars,” said V. Anand, senior general manager, sales logistics, HMIL.
Source: The Hindu

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