MOL, Sical to Enter Joint Venture in India

MOL Auto Logistics (India), the local arm of Japan’s Mitsui O.S.K. Lines, plans to enter a joint venture arrangement with Chennai-based Sical Logistics to operate an automobile management yard at the Port of Ennore.

The move comes just after the Indian subsidiary bagged a contract from Japanese automaker Nissan Motor to provide inland transport and port-related services for vehicle exports.

The new venture, which will be incorporated later this year, will undertake yard operations such as storage and pre-shipment processes for export of completed cars from Nissan’s new plant at Oragadam, near Chennai.

Nissan earlier signed a memorandum of understanding with Ennore Port, a major gateway on the east coast, to utilize the port facility as an export base, and will start moving vehicles, primarily to Europe, in the second half of 2010. Exports are estimated to be around 60,000 units in the first year which would gradually increase to 180,000 units.

Ennore is currently developing a multi-purpose berth with space of 140,000 square meters to facilitate vehicle exports. The $23-million facility is expected to be ready in June, 2010, coinciding with Nissan’s export movements.

Sical, India’s leading multi-modal integrated logistics provider, operates container terminals at the ports of Chennai and Tuticorin jointly with Singapore’s PSA International.