Chennai port reduces free storage for cars to 10 days

2004-0583,1215.59NA 2005-06102,6296.50NA 2006-07114,7564.474.18  Free storage days is the period during which an exporter is allowed to store its goods within the port premises without any charge. Any period beyond this attracts a special fee called demurrage charge.  Chennai Port said freeing the premises of Hyundai's cars in quick time would allow other car exporters to use the port for their own export plans. Vehicle-makers like M&M, Nissan, Renault, Daimler, Volvo and Caterpillar have shown interest in using Chennai Port for exports.  Chennai Port has also rejected HMIL's request for 21 days of free storage period.  TAMP's order comes at a time when HMIL, the largest exporter of cars from India, is planning to double its exports to 300,000 from 150,000 in 2007-08. The expansion, with an investment of Rs 4,000 crore, would take care of the increased demand in overseas markets.  A senior official at the port had earlier told Business Standard, "We are handling Hyundai cars for its brand value and not for profit. The port is losing sizeable revenue due to this."  The port recently allowed 60,000 sq ft land to HMIL to park its cars on the West Quay, for which the company will pay Rs 2.75 crore a year as cargo charges. An iron ore exporter has to pay around Rs 47 crore a year for a 40,000-sq-ft plot of port land.  ChPT countered all the arguments by HMIL and the Society of Indian Automobile Manufacturers on why the free storage time was not feasible. Replying to HMIL's objection, the port trust referred to a special agreement signed in January 2007 which says that the port trust would permit HMIL to bring motor cars in the allotted area only 10 days prior to the shipment.  After an analysis of the time taken to aggregate cars for export, TAMP observed that the average time taken for operation of the export car carrier was nine days.  Now, beyond 10 days, demurrage will be charged at Rs 4 per tonne. Export goods and transhiped goods lying in the transit area beyond the expiry of free days are charged Rs 3.60 per wharfage unit every day or part thereof.