Hyundai renews export pact with Chennai Port

Terms of the pact include 20 days of free storage of cars at the port, priority berthing of vessels and exemption from double berthing charges.

Terms of the pact include 20 days of free storage of cars at the port, priority berthing of vessels and exemption from double berthing charges.   | Photo Credit: B_JOTHI RAMALINGAM

Under the agreement that will be valid for 10 years, it committed to exporting 50,000 cars annually

Hyundai Motor India Ltd (HMIL), the country’s second-largest manufacturer of passenger cars, on Thursday renewed its agreement with the Chennai Port Trust (ChPT) for the next 10 years.

Under the new agreement, which will be reviewed in the sixth year, Hyundai will export a minimum of 50,000 cars annually.

Some of the other terms of the agreement include 20 days of free storage of cars at the port, priority berthing of vessels and exemption from double berthing charges, the company said in a statement.

“We decided to renew our contract with the Chennai Port Trust as the terms and conditions and the facilities offered by them suit our requirements the best,” said Y.K.Koo, MD & CEO, HMIL.

“HMIL and ChPT have a long association and we are really happy that they have renewed their contract for another 10 years,” said Raveendran, chairman, ChPT.

The company said that the Chennai port was strategically located at a distance of just 45 km from its plant, which helped car-carrying trucks and trailers turn around in just six hours at night.

Parking slots that were allotted to HMIL were in the vicinity of the berths which reduced the travel time while loading the cars; this also improved speed and operational efficiency, it added.