New agreement between Nissan and Ennore Port

author image CarTrade Editorial Team
Tuesday 23 July 2013, 11:36 AM

The Japanese auto maker Nissan Motor India Private Limited (NMIPL) stepped into an agreement with Ennore Port Limited (EPL) to make way for the export of their vehicles. The agreement was signed in the gracious presence of Honourable Union Minister of Shipping, G K Vasan and President of Nissan India Operations, as well as Managing Director and CEO, Kenichiro Yomura.

According to the deed, Nissan will have several discounts in the wharfage up to 60000 units per annum at the rate of 0.36 per cent per unit, alongside free parking for first 15 days. As decided, the agreement will be valid for 10 years and can be terminated by both parties with a notice of 3 months from either side. The agreement will be considered void in case the export of Nissan or Renault ships through any other sea port than the EPL or Chennai Port, either in part or in full.

On this development, the statement delivered by Kenichiro Yomura, President of Nissan India Operations, Managing Director and CEO, Nissan India Pvt. Ltd, was quoted as saying, “It is a defining moment for all of us at Nissan in India as we begin a new chapter of business through this agreement with Ennore Port Ltd. 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. The quantitative commitments of this agreement underlines our commitment to India and the state of Tamil Nadu. We are confident of meeting these targets for our export markets while also increasing our market share to 10 per cent in the near future domestically as per our short term power 88 plan. Nissan is surely on its way to robust growth in the following years to come and we appreciate the support of partners such as Ennore Port Ltd.”

Nissan in the year 2008 signed a Memorandum of Understanding (MoU) with Ennore Port Ltd to export its vehicles to various countries. With this, Ennore Port Ltd. is offering special parking space of 140,000 square metre and will give NMIPL the benefit to make use of the newly established marine facilities. Also, the berth space, which is presently under construction, will start its operations soon. Exports from Ennore port got started in September 2010 by Nissan and was the first motor brand to make use of it as the export gateway.

Since then, Nissan have been exporting its vehicles to countries/regions as varied as Africa, Middle East and Europe with a total count being excess of 100 countries, with 2,00,000 vehicles exported from the port during last couple of years. It must be noted that Nissan has set up a manufacturing plant at Oragadam close to Chennai in 2008 with a 45 billion rupees investment spanning over 7 years, with planned operations in total cooperation with the Alliance Global Manufacturing Processes and Quality Standards.

The Renault-Nissan Alliance India Pvt. Ltd. manufacturing plant (RNAIPL) was established in a record 21 months and remains the foundation of the Renault-Nissan Alliance's plans for India. In order to provide a meaningful presence in high growth markets like India, the venture started this plant with a view to keep pace with the changes experienced by auto industries all over the world.

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