Despite cost, automakers prefer Ennore port to ship cars

T. E. Raja Simhan | | Updated on: Mar 12, 2018

BL22_CHENNAI_PORT

Drawn by better connectivity, parking space, cleanliness

It is expensive to handle cars at Ennore port compared to Chennai port. But automobile majors prefer Ennore for its better connectivity, parking space and cleanliness.

Ford India today signed a ten-year agreement with Ennore Port Ltd (EPL) for the export of cars. In July, Nissan signed a similar agreement with EPL.

Ennore port is the costliest in the country when it comes to handling cars. Chennai port, which is the number one car handling port, comes second and Mumbai is the cheapest, according to an official of a large shipping line who did not want to be named.

For example, if a car is valued at Rs 10 lakh, the wharfage fee at Ennore port will be Rs 4,000/car, while at Chennai port it will be Rs 3,300. However, as the volume increases, Ennore port gives discount to the manufacturer.

Discounts on tariff Ford will get discounts on tariff ranging between 5 per cent and 30 per cent depending up on the volume, said Shipping Minister G. K. Vasan. No other financial details were revealed to media at the signing of the agreement.

“We are creating a healthy competition between Ennore and Chennai ports when it comes to handling cars,” he said.

So far, 4.49 lakh cars were exported from Ennore port since September 2010. Some of the automobile majors using the port include Nissan, Toyota, Ford, Ashok Leyland and Honda. The port recently started handling transhipment of cars.

Ennore port has developed a general cargo-cum-car terminal at a cost of Rs 140 crore. This includes a car parking yard of 35 acres to park 10,000 cars. This is the biggest car parking yard amongst the 12 major ports. In comparison, Chennai port can accommodate around 4,000 cars.

>raja.simhan@thehindu.co.in

Published on January 21, 2014
COMMENTS
This article is closed for comments.
Please Email the Editor

You May Also Like

Recommended for you