APM Terminals Pipavav has received its first domestic Ro-Ro shipment of 800 Hyundai cars from a Chennai port, a development which is likely to boost coastal trade and decongest rail and road traffic.
The cars, which are destined for western India dealerships, originated at Hyundai Motor India Ltd's (HMIL) automotive manufacturing facility near Chennai.
The development follows Ministry of Shipping's decision to relax cabotage regulations on special vessels under which foreign flagged Roll-on/Roll-off (Ro/Ro) vessels can ply on domestic coastal routes.
"Pipavav, India - APM Terminals Pipavav welcomed the IDM Symex, which arrived with a cargo of 800 Hyundai cars loaded at the Port of Chennai on February 5, in a pioneering use of economical and environmentally-friendly coastal transportation of Indian-manufactured automobiles," the company said in a statement today.
APM Terminals Pipavav, part of the APM Terminals Global Terminal Network, commenced export Ro-Ro services in August, after NYK Auto Logistics India invested in a state of the art stock yard and PDI [pre-delivery inspection] facilities.
Link Shipping and Management Systems Pvt Ltd is pioneering this venture.
"We are very proud to be a part of this historic intra- coastal shipment of Indian automobiles, serving India's growing automotive industry with safe, and environmentally sustainable logistics alternatives," said APM Terminals Pipavav Managing Director Keld Pedersen.
The company said modal shift incentives currently under evaluation by the Government will further encourage shifting of domestic cargo from road to sea.
APM Terminals Pipavav is India's first Public Private Partnership (PPP) Port with connectivity to the Gujarat region and the northern hinterlands of India.
The government has earlier said the availability of Ro-Ro vessels is essential for the success of efforts to develop coastal shipping and decongesting roads and railways.
"As an example, large automobile clusters exist at Manesar and around Chennai. Large numbers of cars are transported from north to south and vice-versa. It is possible to shift major part of this transportation to coastal shipping," it has said.
So far, the cabotage policy in India allowed first preference to Indian flagships over cargo and foreign ships. Cargo and foreign ships were allowed only when no suitable Indian flag vessel is available for the same.
Indian importers and exporters use Colombo, Salalah, Singapore and Dubai hubs for shipments adding to their costs.
At present about 60 per cent of India's exports and imports containers are transshipped through ports like Singapore and Colombo. This transshipment through ports outside the country involves not only huge expenditure but also extra 7-10 days of transit time.
India at present has 12 major ports which fall under Centre's jurisdiction and about 200 non-major ports under the control of states.
