The automotive logistics companies are now keen on experimenting with coastal shipping and goods trains for transporting automobiles from factories to dealers, instead of transporting cars using road trailers.

However, the logistics companies want the playing field to be levelled in terms of costs. The cost of transporting a small car from Chennai to Ahmedabad by road works out to ₹11,500 but if the same car is moved by a ship then the cost increases to ₹14,500.

Subsidy sought The companies have written to the Union Minister of Shipping and Surface Transport Nitin Gadkari seeking a subsidy linked to each vehicle delivered to the vendor, which will make the business viable.

The recent Automotive Mission Plan (AMP) 2026 announced by the Centre has envisaged that in next 10 years, Indian automotive industry will grow three and a half to four times from the current value of $ 74 billion to $ 260 billion - $ 300 billion.

The companies point out that the automotive trade can expand much faster, provided transporting of the automobiles from factories to the dealers within the country becomes economical.

RoRo service Managing Director of Wallenius Wilhelmsen Logistics (India) Pvt Ltd, Gur Prasad Kohli, said that for the last two years, his company was trying to set up a coastal RoRo (Roll on Roll off) service, which will transport cars, buses and construction equipment, from Chennai to Gujarat. But due to lack incentives and duty on bunker oils, coastal shipping for automobiles remains uneconomical, he said.

RoRo service involves automobiles being driving on and off the ship.

“If a ₹3,000 incentive per car is provided and import subsidy is given on bunker oils then coastal shipping will become viable. Union Minister Nitin Gadkari is apprised of this situation,” Kohli said.

Kohli added that soon he would be approaching his company’s board for an investment of $4 million to $6 million in coastal shipping. In the first year of operation, it may make loss but his company is still willing to take the risk.

Using rail network In the last 12 months, Gurgaon-based APL Logistics Vascor Automotive Pvt Ltd has invested in specialised designed double deck rail wagons and has started transportation of cars between Chennai-Delhi and Chennai-Guwahati route.

Managing Director of the company Umesh Bhanot said that in today’s market the big challenge in transporting cars by railway network is the steep rail freight rates even though diesel prices have decreased by 24 per cent over last one year.

Bhanot said that a green mode of transportation, such as rail, may require a promotional subsidy from the government to reduce pressure on roads and promote adoption of green modes aggressively. India has sub-continental distances, but the share of rail in finished vehicle transportation is less than five per cent.

With automotive production targeted to be at least 9.3 million passenger vehicles by 2026 under the AMP, the Govt must promote green logistics, otherwise it will be very difficult to distribute 10 million cars by road, he said.

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