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Adani Logistics Ltd, a unit of Adani Ports & SEZ Ltd (APSEZ), and NYK Auto Logistics (India) Private Ltd will form a joint venture to transport finished vehicles using automobile freight trains.
NYK Auto Logistics (India) is a subsidiary of Nippon Yusen Kabushiki Kaisha Ltd or NYK Line, Japan’s biggest shipping firm .
The JV company will participate in the automobile freight train operator (AFTO) policy of the Ministry of Railways and offer the trains for transporting vehicles across India in a more efficient manner, APSEZ said in the statement after signing the agreement with NYK Auto Logistics (India).
Automobile sector is witnessing rapid growth with vehicle loading rising by 16 per cent in FY18.
This growth, coupled with Government of India’s focus on promoting alternative means of transportation to reduce carbon footprint, demand for transporting vehicles through rail mode is gaining traction, the company said.
The JV company is planning to commence operation with six automobile freight trains. And based on market trends it hopes to have 25 in operation in three years.
“Adani Logistics’ strength lies in rail operations and having a network of multi-modal logistics parks, while working closely with APSEZ which has 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. This new company marks yet another milestone in our strategic efforts to explore opportunities in rail transportation by auto wagons,” Karan Adani, CEO, APSEZ said in the statement. Its extensive expertise in the domain, including in 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, he added.
“NYK Auto’s strength in end-to-end finished vehicle logistics and handling coupled with our digitisation capabilities and 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 and visibility in the supply chain,” Naotaka Ishizawa, Managing Director, NYK Auto Logistics (India) Private Ltd, added.
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