The Hindu : Tamil Nadu / Chennai News : Chennai port keen on retaining Hyundai

Online edition of India's National Newspaper
Monday, Mar 07, 2005

Tamil Nadu

Tamil Nadu - Chennai

Chennai port keen on retaining Hyundai

By N. Ravi Kumar

CHENNAI, MARCH 6. Setting its sights on becoming a gateway for automobile exports, the Chennai Port Trust (ChPT) has formulated a strategy to retain global car major Hyundai as its anchor customer and rope in Maruti too.

A lot of planning has gone into it, says K. Suresh, ChPT Chairman, talking about the upcoming memorandum of understanding with Hyundai and plans to develop facilities, including a multi-level car parking terminal, for promoting exports.

Hyundai has been shipping cars manufactured at its Irungattukottai plant from the port since 2000-01. Significantly, the ChPT proposal comes at a time when Hyundai has revealed a plan to switch loyalty to the neighbouring Ennore port and there is pressure on the ChPT to shore up its revenues, aggregating more clean cargoes.

The well-laid out parking yard developed by the port for cars meant for exports is just a small beginning. The proposed parking terminal, says K. Elangovan, ChPT Deputy Chairman, will have six levels. There will be two blocks, each to accommodate 3,000 cars. Many attendant benefits will accompany, including a water sprinkler to spray clean the cars. The terminal will be developed on a build-own-transfer basis.

But more importantly, the port will figure prominently in the map of mainline vessels. "Hyundai has promised to bring in a minimum of 26 pure car carriers (ships) a year. The vessel from Seoul will call at Chennai and sail through the Suez Canal to North Africa, Italy, France, Spain, Portugal, the United Kingdom, Belgium and Norway, countries to which Hyundai cars are exported. The voyage will be 45 days long.

The port plans to attract Maruti, which exports cars to Europe and Africa, underscoring the cost-benefits. The ChPT will hold discussions with the Railways to levy special rates for moving cars. The objective is to bring Maruti cars manufactured at Gurgaon, Haryana, on wagons, which take Hyundai cars to north India.

Concessions on charges

Under a long-term agreement, of 10-15 years, the port will offer Hyundai concessions on charges. `Export more to avail yourself of more concessions' will be the governing principle. Concessions will be offered on export of more than 30,000 cars. If Hyundai failed to export a minimum of 30,000 cars, it will have to compensate the port.

Hyundai exported 39,874 cars in 2003-04 on 22 vessels through the port and up to February in the current fiscal it shipped 75,812 cars on 39 vessels.

Noting that the proposed car handling infrastructure will be the best in the country, he said the port was keen on improving its revenues, particularly as its expenditure, including Rs.257 crores a year towards the salary of nearly 8,800 employees.

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