Hyundai, CPT ink pact on car exports

Chennai, Jan 17 (UNI) Leading car maker Hyundai Motor India Ltd (HMIL) today signed a 12-year concessional agreement with Chennai Port Trust (CPT) extending their relationship for exporting cars from the port.

The agreement was inked here in the presence of Tamil Nadu Chief Minister M Karunanidhi during 125-year celebrations of the port.

According to the MoU, CPT will offer concessions to HMIL in wharfage, vessel related charges and carrying and forwarding levy charges from the port till 2018 depending on the number of cars exported in a financial year.

HMIL has consented to export its Completely Built Units (CBU) made at its plants in Tamil Nadu as well as any other HMIL plant in the hinterland of CPT for 12 financial years.

Speaking on the occasion, HMIL Managing Director H S Lheem said "the mutually beneficial agreement with CPT will not only help us reduce our export costs but also give reasonable returns to the port over the years given the number of cars we export each year.

"We have so far exported over three lakh cars from India and are looking at increasing our export obligations considerably over the years when our second plant will be operational later in 2007," he added.

Under the agreement, HMIL will pay as less as ten per cent of the port's scale of rates if the number of cars handled in a financial year crossed the 1.50 lakh mark.

CPT has also agreed to provide concessions in vessel-related charges to HMIL in respect of the vessels being called at the port to carry only Hyundai-built CBUs for exports only.

The CPT will also set up a multi-level car parking facility at the port area.

UNI