Hyundai Re-inks Deal With Chennai Port Trust To Export Cars

While Hyundai India may not be the largest manufacturer of cars in India -- that distinction goes to Maruti Suzuki -- it is one of the biggest exporters of cars from the country. Ford has managed to put up a fight to end Hyundai’s dream run of being the largest exporter from India for the financial year of 2017-18, but Hyundai has plans to take the crown back. One of the steps it has taken in that direction is to re-ink a deal with the Chennai Port Trust to use its facilities to send its cars to 88 countries in African, Middle-Eastern, Asian, Latin American and Australian markets.

The new 10-year agreement allows Hyundai to use the facilities of the Chennai Port, which is located just 45km from its assembly plant in Irungattukottai. Check out what both the parties had to say about the deal below:

Press Release

Hyundai Motor India renews MoA with Chennai Port Trust

The new agreement will hold for 10 years

Hyundai Motor India Limited (HMIL), the country’s second largest manufacturer of passenger cars and the number one exporter since inception, today renewed its Memorandum of Agreement (MoA) with Chennai Port Trust, for 10 years.

The new agreement has been attractively designed both in terms of commercials and facilities offered to make it a winner for both stakeholders. Under the new agreement which will be reviewed in the 6th year, Hyundai Motor India will export a minimum of 50,000 cars annually. Some of the other terms of the agreement are 20 days of free storage of cars at the port, priority berthing of vessels and exemption from double berthing charges.

“We decided to renew our contract with Chennai Port trust as the Terms & Conditions and the facilities offered by them suit our requirements the best”, said Mr Y.K.Koo, MD& CEO, HMIL. “It is from here that we began our export and have been rated as the top exporter of India for 12 long years!, he added.

The Chennai Port is strategically located from HMIL at a distance of just 45 km which helps car carrying trucks and trailers turn around in just 6 hours at night. Also, parking slots which are allotted to HMIL is close and in the vicinity of the berths which reduce the travel time while loading the cars, improves speed and operational efficiency, and a saving in the money spent. The Chennai Port also offer greater flexibility with them and is able to handle more than 1 Ro-Ro car-carrier at any point in time. This is particularly helpful to ease month end pressures. Besides, the port is equipped with a railway line, should HMI choose to transport cars by rail instead of the road.

‘HMIL and ChPT have a long association and we are really happy that they have renewed their contract for another 10 years’, said Mr Raveendran P, IRTS, Chairman, ChPT. ChPT is one of the most modern ports in the country offering a wide range of services suited to the needs of exporters. Our competitive pricing helps exporters keep their overheads low which is a definite advantage in the global market.

The port is committed to a clean environment free from any pollution which is a huge advantage for lifestyle cargo like cars, as there is no fear of contamination.

Also Read: Can the Hyundai Grand i10 take on the new Maruti Suzuki Swift?