The Hindu Business Line : Export of Hyundai cars — Chennai port cuts wharfage, vessel-related charges

TO prevent flight of car exports through nearby Ennore Port, the Chennai Port Trust has decided to cut the wharfage charges and vessel related charges for Korean car-maker Hyundai.

"The wharfage charges have been reduced from Rs 715 per car to about Rs 350 per car while the vessel related charges have been cut by 30 per cent on the existing rates," a senior port trust official told Business Line. The decision to slash the wharfage and vessel related charges for export of Hyundai cars through the port was taken at a meeting of the Board of Trustees on July 30. Incidentally, this was the first meeting of the re-constituted Board of Trustees of Chennai Port Trust.

Hyundai Motor India Ltd, a subsidiary of Korean Hyundai Motor Company, has entered into a long-term memorandum of understanding (MoU) with Chennai Port Trust whereby the car-maker has guaranteed export of cars, manufactured at its Irungattukottai plant near Chennai, through the port for 15 years.

As per the MoU, Hyundai which also runs a shipping line Hyundai Merchant Marine, has agreed to bring in two additional automobile carriers which can also load trucks. "Apart from pure car carriers, they have committed to bring in pure car and truck carriers to facilitate and attract other similar cargo like trucks manufactured by Ashok Leyland and Volvo," the official disclosed.

Hyundai has been exporting cars to various European countries through Chennai port for the last four years since it started production in September 1998. The company has plans to increase its exports to 65,000 cars in 2004, going up to 80,000 cars in 2006. "Eventually, Hyundai hopes to export one-third of its total production from the Irungattukottai plant," the official said adding that the Port Trust was loathe to losing a major customer such as Hyundai.

The exports comprise mostly Santros (80 per cent) and Accents (20 per cent) and more than 50 per cent of the exports are bound for European countries.

With Hyundai planning to bring car and truck carriers to the port, the official said that the port trust would shortly start marketing itself to facilitate export of trucks manufactured by Ashok Leyland and Volvo through Chennai port.