Carmakers ferry 1,600 units via sea
Coastal movement of cars is gaining momentum in India. After a successful pilot shipment of 800 cars to Pipavav in Gujarat, Hyundai Motor India, Ford, Renault and Nissan have shipped around 1,600 units to the north Indian market through sea. The four carmakers loaded the cars into a vessel which set sail on Saturday.
Industry representatives say it would save around ~1,500 a car and help the companies to send more vehicles to cater to demands in the upcoming festive season and also mitigate risks of depending on road transport alone.
There will be a return cargo, from Kandla port to Kamarajar Port (earlier Ennore Port) and Cochin Port, carrying cars from Ford and Honda facilities in north India, said a senior official from Kamarajar port.
V Anand, senior general manager, sales and logistics, Hyundai Motor India Ltd, said this is the first time the company was working with a third-party logistics player, Sical, who has tied up with other OEMs (original equipment manufacturers) to increase the size of the cargo to make the shipment route viable. Coastal shipping offers key advantages — it is cost-effective, environment-friendly and helps reduce road traffic congestion that peaks during the festival season, Anand said.
This is also the first time that the transshipment is being undertaken — the cargo will be first discharged at Cochin Port for the Kerala market and then at Kandla port for Gujarat and NCR. Anand agreed this would increase the shipping duration. For instance, shipping by road to Gujarat takes around six-seven days as against 10-12 days by sea. It could be a disadvantage, although it remains a good option if the customer is willing to wait a little longer.
He also noted that availability of trailers was becoming increasingly challenging.
Sical has tied up with Kamarajar Port for this pilot project and also with other auto OEMs both in the north and south for a two-way cargo movement. Ennore and Kandla ports have reduced wharfage to ~500 per car as compared to ~1,600 earlier for cars up to 1600cc.