Chennai Port drives on Hyundai Motor for volume

Posted by Daily Shipping Times on 08-01-2019        Tweet

CHENNAI: 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.