Maruti Suzuki inks pact with Mundra Port

Maruti Suzuki India Limited (MSIL) and Mundra Port and Special Economic Zone Limited (MPSEZL) signed an agreement for a mega car terminal at Mundra, District Kutch, Gujarat. This car terminal is expected to be operational by December 2008.

The agreement was signed by Shinzo Nakanishi, Managing Director and CEO, MSIL and Gautam S. Adani, Chairman and MD, MPSEZL, at Mundra port in the presence of senior officials from MSIL & MPSEZL. The initial investment in the project is expected to be around INR 100 Crore (INR 1 billion). Of this, MPSEZL will invest INR 60 Crore in setting up infrastructure at the port. MSIL will invest INR 40 Crore to set up a 'Pre-Delivery Inspection' centre at the port premises. MPSEZL is planning to augment the port infrastructure in due course of time.

Speaking on the occasion Nakanishi, Managing Director and CEO, MSIL said, "We are delighted to partner Mundra Port and Special Economic Zone Limited for this critical initiative. Maruti Suzuki is ready to play a much greater role in Suzuki's global operations. We have the technology and skills to build top quality cars for the international market. But our export ambitions need infrastructure support on the ground, and this initiative will be a big step forward in filling that gap."

Gautam, S. Adani, Chairman and MD, MPSEZL, said "We are pleased to develop cost effective Roll-on Roll-off (RORO) terminal for facilitating automobile export by Maruti Suzuki, the largest car manufacturer in India. Our RORO terminal at Mundra will provide cost competitive support to Indian automobile industry for international trade and our aim is to make Mundra a hub for automobile exports. The excellent draft at Mundra will allow berthing of the largest car carriers and turn them around in the least possible time."

Maruti Suzuki will be launching its new model, A-Star, by the end of this calendar year. With this, exports are likely to go up significantly. The company plans to export two lakh cars annually to Europe and the rest of the world by the year 2010.

Maruti Suzuki will commence export operations at Mundra Port from January 2009. In view of increasing export volumes, Maruti Suzuki will continue exports from Mumbai as well.

The new Terminal, will have a car stockyard spread over 35 acres, and a dedicated "buffer area" for cars to be parked just before loading on the PCC (Pure Car Carrier) ships.

The car Terminal offers a "Roll On, Roll Off" (or RORO) berth, which speeds up the loading process and minimises the chance of damage to cars.

This mega car terminal would also house a Pre-Delivery Inspection (PDI) Centre. Spread over 7500 square metres, this Centre is being set up to conduct the final quality check before they are loaded on ships for export. Rs 40 Crore being invested in this facility is part of the Rs. 9000 Crore investment plan announced by MSIL and Suzuki Motor Corporation.