Hyundai takes coastal sea route to transport cars

Hyundai Motor India Limited has taken the initiative of transporting new cars from its Sriperumbudur manufacturing plant located in Tamil Nadu to the northern region of the nation with the use of seaways. The new cars are now being brought from the factory to the Chennai port by road on trailers which were later loaded on to a roll on/roll off vessel IDM Symex. The vessel delivered the cars at Pipavav in Gujarat, a journey that takes 6 days.

Adopting this alternative route will result in decongestion on the road and also help to reduce the overall carbon footprint. Although a decision is awaited, the Finance Ministry has been recommended by the Shipping Ministry to offer an incentive of Rs 3,000 per car to manufacturers who resolve to use the waterways.

The ro-ro vessel belongs to a Singapore-based Symex Maritine Inc and can accommodate 800 Hyundai cars for its trip from Chennai to Gujarat. The vessel will ferry on fortnight bases and has the capacity to carry around 2,000 vehicles in a single journey. Permitted by DG shipping, the IDM Symex can use Indian waters for the next five years.

Commenting on the new trade initiative, Binu Joshua Thomas, Director, Link Shipping, who also represents Symex in India said, “This is the first time in the country that cars are being transported through coastal shipping. We have been moving trucks from New Mangalore to Hazira,”

“In the return voyage, we are talking to manufacturers to move their vehicles to southern destinations,” he further said.

On the cost factor, it has been reported that transportation by the sea results in saving up to 25 to 30 per cent when compared to road transport. The same cargo ferried by the vessel in a single voyage will required around 100 trailers to transport by road. The charges for shipping a small car are Rs 500 while for a large vehicle is Rs 2,000 which has to be paid at the port before-hand.

India has a long coastline of 7,517 km, in-spite of which the overall local trade activity is only around 15 per cent corresponding to 43 per cent in the European Union.

Source- BusinessLine