KPL to sign ex­port deal with Toy­ota

KPL has also dropped its wharfage fee for car ex­ports to make the tar­iff almost on par with the Chen­nai port.The Ja­panese company is al­ready us­ing the port to ex­port its cars man­u­fac­tured in Kar­nataka.

Cargo Talk - - Inter View - CT BUREAU

Toy­ota is likely to sign a long-term agree­ment with Ka­ma­ra­jar Port Ltd (KPL) for ex­port­ing cars. This will help the auto ma­jor get vol­ume-based dis­counts.

MA Bhaskarachar, KPL Chair­man and Man­ag­ing Di­rec­tor said, “Ne­go­ti­a­tions are go­ing on with Toy­ota to sign the agree­ment”.

KPL has sim­i­lar long-term agree­ments with Nis­san In­dia and Ford In­dia. The Port and Nis­san signed an agree­ment in July 2013 to utilise the port’s au­to­mo­bile and gen­eral cargo berth for ex­ports on a need-based re­quire­ment with a min­i­mum as­sured traf­fic of 60,000 cars each fi­nan­cial year. The agree­ment with Ford, signed in Jan­uary this year, is to utilise the berth for a pe­riod of 10 years un­less ter­mi­nated by ei­ther par­ties.

Wharfage fee

Mean­while, KPL has dropped its wharfage fee for car ex­ports to make the tar­iff almost on par with the Chen­nai port.

The ad val­orem (fee charged ac­cord­ing to value of goods and ser­vices) wharfage on cars and au­to­mo­biles has been re­duced to 0.34 per cent as against 0.40 per cent in 2013 and 0.45 per cent in 2012. The ad val­orem wharfage at Chen­nai port is 0.30 per cent.

“Auto ma­jors al­ways com­plained that our rates were higher when com­pared with neigh­bour­ing ports. Now, they should be happy with the re­duc­tion in wharfage,” added Bhaskarachar.

“Ex­port of Nis­san Sunny through the port used to cost 3,155 in 2012. For the same model, after the re­bate, the rate has dropped

` to ` 2,384 – a re­duc­tion by nearly 32 per cent,” he said.

The au­to­mo­bile/gen­eral cargo berth can ac­com­mo­date a car car­rier with a ca­pac­ity of 8,000 cars. It has a back-up area of 1.41 lakh sq mt with a car park­ing yard for 10,000 mid-size cars in ad­di­tion to the tran­sit park­ing area of 25,000 sq mt be­hind the berth.

The port set a new record by han­dling 2.01 lakh au­to­mo­biles through the berth for com­pa­nies like Nis­san, Toy­ota, Ford, Honda and Ashok Ley­land. This was nearly 40 per cent more than the pre­vi­ous year’s han­dling of 1.44 lakh cars, he added.

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