Bangalore: Japanese transporter Mitsui OSK Lines Ltd has won a contract for moving cars for export from a new Nissan Motor Co. Ltd plant.
The factory, being set up at Oragadam near Chennai in Tamil Nadu, is expected to start production in early 2010, while exports, mainly to Europe, are scheduled for late that year.
The contract includes transporting the vehicles to a port and yard operations at the port such as storage and preparation for loading, Akimitsu Ashida, president, Mitsui OSK Lines, said in a statement on Monday. He did not mention the contract’s value.
Logistics services: A file photo of Mitsui OSK Lines’ Akimitsu Ashida. Michael Caronna / Bloomberg
In October, Nissan Motor India Pvt. Ltd, had signed an agreement with Union government-owned Ennore Port Ltd near Chennai to export through it automobiles manufactured at the Oragadam plant.
A month later, Mitsui OSK Lines set up MOL Auto Logistics (India) Pvt. Ltd, a wholly owned auto logistics unit, to tap the domestic auto market and car exports. It will provide inland transportation services by car trailers, as well as export related port services for finished cars.
India’s vehicle exports are poised to increase in the future and MOL Auto Logistics will offer a full line-up of inland transport and export-related port services for finished vehicles, Ashida said in the statement. “These contracts should lead to ocean shipping in the future,” he added.
In May, NYK Line (India) Ltd, the India unit of Nippon Yusen Kabushiki Kaisha Ltd, Japan’s biggest shipping firm by fleet size and revenues, entered into a 50:50 joint venture with state-owned Container Corp. of India Ltd to transport automobiles over rail.
Global vehicle carrier specialists such as Hoegh Autoliners AS and Wallenius Wilhelmsen Logistics AS have also entered India’s auto logistics market by starting shipping services or setting up dedicated automobile terminals at ports to tap the country’s automobile exports.