Chennai ports compete with Railways to woo auto giants

While the Chennai and Kamarajar Ports have already emerged as the preferred ports for car export, the shipping ministry is also determined to make the sea route preferable for transporting cars within the domestic markets. 

On February 5, Hyundai transported 800 units from Chennai Port and the vessel reached Pipavav Port in Gujarat in a record time of five days that is by February 10. “This is the first time, an original equipment manufacturer (OEM) is using ships to move their cars across domestic markets,” a Chennai Port official told DT Next. 

To tap the coast-to-coast shipment of car to its full potential, the Chennai Port and Kamarajar Port officials are in talks with OEMs and vessel operators. “In a bid to woo these OEMs, ports are also offering concession and incentives on wharfage (charge assessed by port when goods are moved through the location),” the shipping ministry said in a notification. 

On the other hand, the railways reiterated their commitment to be the preferred domestic transportation service provider by inaugurating the country’s first Rail Auto Hub (RAH) at Walajabad. 

The rail auto hub, located 12-30 km away from the manufacturing facilities, would be of great advantage to several car makers located in Oragadam, Sriperumbudur and Singaperumalkoil. 

“Hinterland traffic from the manufacturing facilities to the consumption centres is the prime segment for us and that is the main idea behind the RAH,” a senior railway official said. 

Even though the rail network poses stiff competition, the Walajabad facility will also supplement the transportation of automobile cargo through road and ports as it has seamless road connectivity.