Japan's Nissan Motor Corporation, which is planning to manufacture small cars from its upcoming facility near here, on Friday signed an agreement with Ennore Port (EPL) to export the cars to European markets.

Nine models, including the next-generation Nissan March, will be rolled out from the plant at Oragadam, which is expected to begin production in 2010, said Shouhei Kimura, managing director of Nissan Motor India.

The factory would have a capacity to make 400,000 cars annually for local and overseas markets, of which, it is planning to ship 1,10,000 vehicles through Ennore port to Europe in 2011, said Toshi Fumi Hirai, vice-president (corporate), Nissan Motor India. Over a period of time, the company will scale up the number of units for export to 180,000, he added.

However, the company refused to divulge details about the investment. At least 50 vendors are expected to set up their units near Nissan's plant to supply raw materials, Kimura said.

Though he refused to comment on the investment the vendors are expected to make, a senior state government official said these unit heads are likely to spend around Rs 1,000-1,500 crore (Rs billion) (Rs 10-15 billion).

S Velumani, CMD of Ennore Port, said the port would invest Rs 110 crore (Rs 1.10 billion) to create a multi-cargo berth facility for the car manufacturer with 140,000-square-metre parking space inside the port. Chennai Port Trust, which is a major stakeholder in Ennore Port, said it and Ennore ports together are expected to handle around 500,000 cars by 2011.

Both the ports are investing to create infrastructure to support automakers' expansion plan. Hyundai shipped 138,000 cars through Chennai port in 2007-08, he said. During the first six months of the current financial year, the company had exported 117,000 cars through the port.

To give further boost, the port is planning to have a roll on/roll off (Ro-Ro) terminal inside the port with an investment of around Rs 80 crore (Rs 800 million). A ro-ro terminal helps transportation of wheeled vehicles that may be driven into and out of the ship.