Auto firms take to multi-modal ways to cut costs

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Ennore Port has set an ambitious target to becoming the number one car exporting port in south by handling 2.5-3 lakh units by 2014-15. Ennore Port has set an ambitious target to becoming the number one car exporting port in south by handling 2.5-3 lakh units by 2014-15.
SummaryThe industry is faced with infationary pressures and a slow market condition.

“We are increasing our storage space for the cars, in order to increase efficiency in handling more cars. The additional space of around 10,000 cars would be ready by the middle of 2014-15, “ he said

Currently, it has a storage capacity for 10,000 cars and an additional storage area for 2,500 cars near the wharf.

This capacity is almost fully utilised now and the port is looking at more car manufacturers to export from the facility for which the expansion would be required.

The Ennore Port had already inked a long-term agreement with Nissan Motors to facilitate export vehicles from the port. Under the 10-year agreement, Nissan has concessions up to 60,000 units per annum in the wharfage. Ennore port is also in the preliminary talks with Ford for signing a similar agreement. Ford currently exports around 20,000 cars from Ennore Port and this is expected to grow to 60,000 in two years, he added.

According to him, Honda Cars India has also expressed interest to start exports from Ennore Port.

The auto major, which has its manufacturing facilities in north India, has started trial run of bringing a few cars to Ennore Port for exports.

Ennore Port has set an ambitious target to becoming the number one car exporting port in south by handling 2.5-3 lakh units by 2014-15. The port, which exported 1.45 lakh units in 2012-13, is expected to see exports of 1.75-2 lakh units this year. Car companies that export from Ennore port include Nissan, Ashok Leyland, Ford and Toyota.

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