Monday, July 22, 2013

Japan car major Nissan inks 10-year accord with Ennore Port

Source:http://www.sagarsandesh.com/news/jap-car-major-nissan-inks-10-year-accord-with-ennore-port/

Mr M.A. Bhaskarachar, CMD, EPL (second from left), and Mr Kenichiro Yomura, Managing Director and CEO, NMIPL, exchanging documents of the agreement in the presence of G.K. Vasan, Union Shipping Minister, in Chennai, on July 20. Mr Atulya Misra, Chairman, Chennai Port Trust (extreme left) and Mr. N. Muruganandam, Joint Secretary (Ports), Ministry of Shipping, (extreme right) also seen.

After utilizing the facilities of Ennore Port for the past three years for exporting its cars to different countries through a Memorandum of Understanding (MoU), Japanese car major Nissan on July 20 inked a 10-year agreement with the port management to continue with the export of cars.

According to the agreement, Nissan Motor India, a 100 % subsidiary of Nissan Motor Co Ltd, Japan, will use only the Ennore Port to export cars manufactured at its Oragadam plant, near Chennai, for the next 10 years.

Mr. M. A. Bhaskarachar, CMD, Ennore Port Ltd., and Mr. Kenichiro Yomura, Managing Director and CEO, Nissan Motor India Pvt Ltd, signed the exclusive agreement in the presence of Union Shipping Minister G.K. Vasan.

The agreement also elaborated that in case the Ennore Port is unable to handle cars for some reason, Nissan and its alliance partner Renault can use the Chennai Port, which is a 33 % stake holder of EPL.

Besides, it was also clearly mentioned in the agreement that it can be terminated by both the parties with a notice of three months from either side.

Addressing the gathering, the Union Minister of Shipping said: “Ennore Port has many firsts to its credit. It was the first Major Port under the Government of India to be corporatized. Initially, the port was conceived to handle only thermal coal for Tamil Nadu Electricity Board. However, its vast potential has been fully appreciated by all the stakeholders and it is developing fast by way of commissioning one project after the other.”

While congratulating the port management for focusing port-related infrastructure projects in a discreet and professional manner, Mr. Vasan hoped that both EPL and Nissan will grow together to greater heights drawing strength from each other.

The agreement, which assures sustained revenue for the country’s only corporate Major Port, has virtually blocked the Japanese car company from using other ports like Krishnapatnam and L & T’s Katupalli Port, which are located in the vicinity of Ennore Port.

After entering into an MoU with Ennore Port in 2008 for export of cars, Nissan started exports from the port in September 2010. It may be noted here that Nissan, which was the first motor company to use Ennore Port as the export gateway for cars, has exported more than 2 lakh vehicles till date.

As a gesture towards Nissan, EPL is providing special berth space for parking vehicles and will give the company the priority to use the newly developed marine facilities.

Besides, Nissan can enjoy concessions in the wharfage up to 60,000 units per annum, free parking space for the first 15 days and priority in handling of automobile units in the port.

Addressing the Media during the signing ceremony, the CMD of EPL, stated: “The port has developed a general cargo-cum-terminal on 35 acres, at a cost of Rs.140 crores, facilitating parking of 10,000 cars and it is the biggest car-parking yard amongst the Major Ports.”

Commenting on the new step, the Managing Director and CEO, Nissan Motor India Pvt Ltd, commented: “It is a defining moment for Nissan in India as we begin a new chapter of business through this agreement with EPL.”

This milestone completes our vision of making the Oragadam plant a strategic hub for both the domestic market as well as for exports through the support and successful partnership with Ennore Port, Mr. Yomura added.

Besides other senior representatives from Chennai and Ennore ports and EXIM fraternity, Mr. N. Muruganandam, Joint Secretary (Ports), Ministry of Shipping, and Mr. Atulya Misra, Chairman, Chennai Port Trust, attended the ceremony.

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