Will operate 25 trains in three years
Adani Logistics Ltd. (ALL) has signed an agreement with NYK Auto Logistics (India) Private Ltd. (NALI) to form a joint venture that will specialise in transportation of finished vehicles using automobile freight trains.
The JV would participate in AFTO (Automobile Freight Train Operator) Policy of the Ministry of Railways and offer its trains for transporting vehicles across India more efficiently.
To start with 6 trains
The JV is planning to commence operation with six trains. Based on market trends, it will have 25 trains in operation in three years.
Karan Adani, CEO, Adani Ports and Special Economic Zones, said “This new company marks yet another milestone in our strategic efforts to explore opportunities in rail transportation by auto wagons in designated territory in India.
“This partnership now allows us to strengthen our inland capabilities with a reliable association focussing on quality and visibility in the supply chain,” said Naotaka Ishizawa, MD, NALI.
The automobile sector is witnessing rapid growth and loading activity in this sector increased by 16% in 17-18.