Adani Logistics and NYK Auto Logistics have agreed to form a joint venture specialising in transporting finished automobiles by rail.
To begin with, the joint venture will run six automobile freight trains but it expects to have 25 running in three years time.
Adani Ports and Special Economic Zone (APSEZ), of which Adani Logistics is a subsidiary, said in a statement that the automobile sector is witnessing rapid growth and that investment in transporting vehicles by rail would help reduce carbon dioxide emissions.
APSEZ expects that finished vehicles distribution through rail mode will grow faster than the industry’s growth rate.
APSEZ Zone’ CEO Karan Adani said: “Adani Logistics 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 joint venture in a very unique position.”
The managing director of NYK Auto Logistics (India), Naotaka Ishizawa, said: “Our 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 and visibility in the supply chain”.