The joint venture aims at strengthening finished vehicles transportation service network in India, and will offer its automobile freight trains for transporting vehicles across India
New Delhi, July 17, 2018
Adani Logistics Ltd (ALL), a subsidiary of Adani Ports & SEZ Ltd (APSEZ), and NYK Auto Logistics India Private Ltd (NALI) will form a joint venture that will specialise in transportation of finished vehicles using automobile freight trains.
Automobile sector is witnessing rapid growth. Loading activity in this sector increased by 16 per cent 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 will participate in AFTO Policy of Ministry of Railways and offer its 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 Adani Logistics sees a great opportunity, in collaboration with NYK Auto Logistics India, to ride this growth. Accordingly, the JV is planning to commence operation with 6 automobile freight trains. Based on market trends, the JV 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, will render a strategic partnership that would, effectively cater to the widespread customer demand in India, through quality services and solutions
Karan Adani, CEO, Adani Ports & SEZ Ltd, commented, “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.”
Naotaka Ishizawa, Managing Director, NYK Auto Logistics India Pvt Ltd, said, “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”.
Adani Logistics Ltd is an integrated logistics service provider and offers end-to-end logistics solutions in the India territory, including - owning and operating container freight stations, ICDs, multi-modal logistic parks & transportation services and handling of cargo. ALL already has Category 1 license from the Ministry of Railways, Government of India which allows ALL to operate container trains on the broad-gauge network of the Indian Railways throughout India.