The Mumbai-based rail logistic company Arshiya Rail Infrastructure Ltd will acquire 10 rail rakes on lease from a US-based company.

Arshiya (ARIL) signed an agreement with GATX Corp's Indian unit here on Tuesday.

ARIL is a part of Arshiya International Ltd, a logistics company. ARIL will get the new rakes this year on a 10-year lease. This marks the entry of GATX Corp into the railcar leasing segment in India.

Indian Railways had launched the wagon leasing scheme in the rail budget of 2008.

“The agreement will enable us to free-up capital and we will use the money to fund other investments like building rail terminals,” Mr Ajay Mittal, Arshiya Group Chairman and Managing Director said.

GATX Corp will invest about Rs 120-130 crore on the ten rakes. ARIL will acquire these rakes on a lease basis and operate it for freight forwarding within the country. ARIL did not disclose the financial value of lease, but said it works out to much cheaper than owning a rake.

Arshiya International Ltd, owns 20 rakes. Mr Mittal said they would like to move to a system where at least 50 per cent of the rakes are leased.

“India is one of the most exciting countries. The economy is growing at 7 per cent. We see a lot of potential in India,” Mr Brian Kenney, CEO of GATX Corp said.

“The rakes will be manufactured in India and the design will be approved by the Research Design and Standards Organisation (RDSO),” Mr Saurabh Sood, Managing Director and Country Head of GATX India said.

Mr Mittal said that annually about 3.5 billion tonnes of freight movement happens across the country and 65 per cent of freight moves on road. “Moving freight through railways can bring down supply chain costs.”

satyanarayan.iyer@thehindu.co.in

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Published on May 22, 2012