In what is the first for India, Hyundai Motor Company is now using ships to move its cars across domestic markets to save on costs and reduce carbon footprint. As many as 800 cars were loaded on to the M.V. IDM Symex, a roll-on-roll-off (RoRo) vessel, at the Chennai Port last Saturday. The cargo will be unloaded at  Pipavav Port in Gujarat, Chennai Port Deputy Chairman Cyril C. George said.

cargo ship carrying cars

Known as Transshipment, this is one of the most cost-effective ways of transporting large quantities of goods efficiently. Previously, there were a lot of restrictions on this kind of transportation, because of the Cabotage laws, but Transport Minister Nitin Gadkari amended the laws to make this possible. Cargo ship carrying cars

cargo ship carrying cars

Though Hyundai had been using Chennai Port for exporting cars, this is the first time it is transporting its cargo through the sea for the domestic market.  Cargo ship carrying cars

Trade sources said it takes normally three to four days for the car manufacturer to move vehicles from the production centres near Chennai to Gujarat region through trailers.

cargo ship carrying cars

Picture Source   cargo ship carrying cars

This is a part of the Government and Port Authority initiative to encourage using the coastal sea route for transporting cars. The Government has promised an incentive of Rs 3000 per car (pending approval) for cars transported using the Sea Route.

Chennai Port Chairman M.A. Bhaskarachar said:

“To encourage the OEMs to use our services, we have announced a flat wharfage rate of Rs.500 per small car and Rs.2,000 for big cars. Also, the wharfage for RoRo vessels using coastal route has been reduced by 40 percent of the normal tariff. This decision was taken within a day”.

After flagging off the maiden service, Chennai Port Trust officials are also talking to other OEMs such as Nissan and Ford to start using the coast for transporting cargo.

cargo ship carrying cars

Picture Source cargo ship carrying cars
So what do you think of this grand new feat by the transport minister?

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