Automobile firms housed in this city also known as the Detroit of South, are betting big on coastal movement of cars.
Currently, 96 per cent of cars are sent to the end destination through road (road car carriers) while 4 per cent are loaded on trains. “Going forward we want road transportation to come down and we want to focus more on trains and coastal movement. Opting for coastal movement means a saving of Rs. 1,500 per car,” said a senior official of an automobile firm.
On Saturday, around 1,600 cars were sent out through a vessel at Kamarajar Port (formerly known as Ennore Port). Of this, 1,038 cars were rolled out of Hyundai Motor India Limited (HMIL) the remaining cars were from Ford, Renault and Nissan. This first transhipment was undertaken by Sical Logistics. Sical has tied up with Kamarajar Port for this pilot venture and has also inked pacts with other auto OEMs for two way cargo movement from the Southern and Northern regions in India.
V. Anand, Senior General Manager – Sales and Logistics, HMIL, told The Hindu , “We did a pilot shipment of 800 cars, post which we have been trying to improvise on the learning’s from the project. This is the first time that the transhipment is being undertaken — the cargo will be first discharged at Cochin port for the Kerala market and then at Kandla port for Gujarat and finally the NCR region.” He also highlighted that supply chain is at risk when you depend on a single mode of transportation. “Bulk transport can’t be done through road as the number of car carriers have been dwindling.” An analyst who tracks the automobile sector said that there are 13,000 to 15,000 car carriers in India.
According to the analyst, coastal shipping has it own advantages — it’s cheaper and can save up to Rs 1,500 to Rs 2,000 per car, it is environment-friendly and, it reduces traffic congestion. The negative side to this is, “It is not time efficient. It takes two-three days more,” he added. For instance, consignment sent to Gujarat from Chennai via road would reach in 6-7 days whereas through the coastal mode it would take 10-12 days.
Automobile firms said that they would be able to comment on the cost savings after two months. The vessel capacity is 3,500 cars and car makers here are targeting 2-3 voyages per month from this port.
M.A. Bhaskarachar, Chairman and Managing Director, Kamarajar Port Limited, told The Hindu , “This will open up more business avenues for the port and we are keen on promoting coastal shipping.” He added that the port has capacity to house 20,000 cars.
