Joint venture agreement aims at strengthening finished vehicles transportation service network in India
Adani Logistics Ltd ( LL), 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 establishmen joint venture.
Automobile sector is witnessing rapid growth. Loading activity in this sector increased by 16% in 17-18. This growth, coupled with Government o India’s focus on promoting alternative means of transportation to reduce carbon foo print, 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 planniing to commence operation with 6 Automobile Freight Trains. Ba ed 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 Logistic (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, EO, 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”.
About Adani Logistics Limited
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 & t ansportation services and handling of cargo. ALL already has Category 1 License from the Ministry of R ilways, Government of India which allows ALL to operate container trains on the broad-gauge network of the Indian Railways throughout India.
About NYK Auto Logistics (India) Private Limited
It is wholly owned subsidiary company of Japan based Nippon Yusen Kabushiki Kaisha – NYK Group, which provides a diverse range of transportation, shipping & logistics services through a global network. NYK Auto Logistics India are specialists in finished vehicles with value-added services such as PDI operations at OEM plants, port terminal management, IT enabled operations, end-to-end logistics solutions including inland yard management & inland transportation.