Gujarat Pipavav Port bullish on car exports

Posted by Daily Shipping Times on 19-06-2017        Tweet

AHMEDABAD : Gujarat Pipavav Port Ltd (GPPL) plans to double its roll-on roll-off (RoRo) business over the next two years on the back of strong car exports from India, a top company official has said.

A RoRo is a vessel with built-in or shore-based ramps that allow four-wheeled cargo like cars, to be rolled on and off the vessel, when it is in port.

“In May this year, the board approved plans for further expansion and land preparation at the Pipavav Port to support Pipavav’s ambition to double RoRo business over the next two years,” Managing Director Keld Pederson said recently.

Pederson said volume will be fuelled by the export of passenger vehicles. The Gujarat-based port and shipping firm, managed by the Netherlands-based port operator

APM Terminals, a unit of AP Moller-Maersk Group, accounts for a 10% share of the car export business.

Passenger vehicles exports from India—the second largest category after two wheelers—have been advancing at a compounded annual rate of 8.9% over the last six years.

Exports grew 10% to 758,830 units in fiscal 2016-17, the fastest in six years, according to Society of Indian Automobile Manufacturer (Siam).

The growth was primarily led by Ford India Pvt. Ltd, the second largest in the pecking order after Hyundai Motor India Pvt. Ltd. Ford’s overseas shipment jumped 43% to 158,469 units over a year ago period, according to Siam.

Pipavav is looking to ship around 100,000 units by the turn of the current fiscal, Pederson said, compared to 83,000 passenger vehicles shipped in FY 2017.

While Pipavav Port is working closely with carmakers such as Ford, it is also in talks with the local arms of others that have big export plans, he said. Pederson said his firm is in talks with passenger vehicle makers such as Honda Cars India Ltd and Maruti Suzuki India Ltd, among others.

“We are working closely with both existing and potential new OEMs (original equipment manufacturers),” he said. Pipavav Port is also looking to tap into the opportunity of transporting cars from one city to another within the Country through waterways and has commissioned a study to assess the potential.

Despite its huge coastline, India’s logistics system is skewed towards roads and rail, which account for 55% and 22% of the transportation market respectively.