Joint venture agreement aims at strengthening finished vehicles transportation service network in India
New Delhi, July 16, 2018: Adani Logistics Ltd (ALL), a subsidiary of Adani Ports & SEZ Ltd have signed an agreement with NYK Auto Logistics (India) Private Ltd. (NALI) to form a joint venture which specializes in transportation of finished vehicles using Automobile Freight Trains, and concluded an agreement for the establishment of this joint venture.
Automobile sector is witnessing rapid growth. Loading activity in this sector increased by 16% in 17-18. This growth, coupled with Government of India’s focus on promoting alternative means of transportation to reduce carbon footprint, increasing demand of transporting vehicles through rail mode is gaining traction. This JV Company will participate in AFTO Policy of Ministry of Railways and offer it’s Automobile Freight Trains for transporting vehicles across India in more efficient manner and will contribute towards ‘green’ India.
It is expected that finished vehicles distribution through rail mode will grow faster than the industry’s growth rate and ALL sees a great opportunity, in collaboration with NALI, to ride this growth. Accordingly, the JV Company is planning to commence operation with 6 Automobile Freight Trains. Based on market trends, the JV Company will have 25 Automobile Freight Trains in operation, in 3 years.
Adani Logistics’ extensive expertise in the domain, including its growing footprint of multi-modal Logistics Parks, strategically located and capable of handling these Automobile freight trains, along with its collaboration with NYK Auto Logistics (India) Private Ltd., will render a strategic partnership that would, effectively cater to the widespread customer demand in India, through quality services and solutions.
Speaking on this momentous occasion, Mr Karan Adani, CEO, APSEZ, "ALL’s strength lies in rail operations and having a network of multi-modal Logistics Parks, while working closely with APSEZ having a pan India port footprint. This formidable association combines the strengths of individual parent companies, putting the JV in a very unique position, utilising these readily available assets and expertise, to deliver an end-to-end value driven, asset and service based, supply chain solutions, to the automobile industry in India. 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.”
Speaking on behalf of NYK Auto Logistics (India) Private Ltd, Mr. Naotaka Ishizawa, Managing Director, “NALI’s strength in end to end Finished Vehicle Logistics & handing coupled with our Digitisation capabilities & customer portfolio gives us a good footprint in India. This partnership now allows us to strengthen our inland
capabilities with a reliable association focussing on quality & visibility in the supply chain”.