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.

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.