KOCHI: A new business avenue opened up for Cochin Port on Tuesday when leading car makers led by Renault, Ford, Hyundai, Toyota and Honda began using the port for the first time to ship vehicles for the lucrative Kerala market.
Car carrier ship MV Dresdan reached here early on Tuesday carrying 345 cars which are to be distributed to various dealers in Kerala. The move would not only boost coastal shipping but also reduce congestion on the roads and bring down the carbon footprint. Nitin Gadkari, Union Minister for Shipping, was present to witness the arrival of first car carrier ship at Ernakulam Wharf of Cochin Port.
The first
Cyprus flagged MV Dresdan is the first foreign vessel to conduct service between ports in India. Operated by Chennai-based SICAL Logistics, the car carrier plies along the Ennore-Cochin-Kandla-Cochin-Ennore route. While Renault, Ford, Hyundai and Toyota cars are transported from Tamil Nadu and Honda and Ford were brought from Gujarat.
The operator is also targeting Maruti Suzuki, which has a big market in Kerala. Car handling requires highly clean surroundings and storage area of high quality. Cochin Port has identified Q7 berth at Ernakulam Wharf for handling the cargo and a clean yard of 4,000 sq m area at Q7 has been allotted for storage of the cars until delivery to the dealers, which is normally expected in a week’s time, said officials.
The significance
“Transportation of cars from factory to the dealers in Kerala by waterways gains significance in the wake of the fact that Kerala is a major consumption centre of cars with annual sales of about 1,50,000 to 1,80,000 units.
If there is 50 berthing a year with 1,000 cars per call 30 percent of cargo required for Kerala market shifts to the coastal transport mode. MV Dresdan will have six berthing in a month. It can also bring down the price of cars by Rs 3,000 to Rs 4,000,” pointed out Jimmy George, senior deputy traffic manager of Cochin Port Trust.
Present mode of transportation
The present mode of movement of automobiles for internal consumption in India is dominated by huge car carrier trucks plying on our congested roads, and Kerala is no exception. The prospect of Cochin Port attracting coastal movement of cars, with major automobile manufacturers moving cars to dealers in Kerala from factories in Tamil Nadu, Gujarat and Haryana assumes significance in this regard.
A rise in income
“Adequate volume of cargo can bring in a steady source of income of around Rs 3 to 6 crore per annum to the port in addition to the significant contribution in environmental safety by eliminating thousands of trucks from the road and the resultant emission savings. The Port has offered rebates in Port charges in advance towards attracting the business. The new business is the culmination of sustained efforts of Cochin Port. Concessional wharfage of Rs 500 per car and Rs 900 per truck and 50% rebate in the notified vessel related charges,” the traffic manager said.