Adani Logistics, NYK Auto Logistics to run rail logistics in joint venture
Shalini | Myequity news | Date : 16-07-2018 23:50:00 IST
Adani Logistics Ltd (ALL), a subsidiary of Adani Ports & SEZ Ltd have signed an agreement with NYK Auto Logistics (India) Private Ltd. (ALI) to form a joint venture which specializes in transportation of finished vehicles using Automobile Freight Trains, and concluded an agreement for the establishment of this joint venture.
Automobile sector is witnessing rapid growth. Loading activity in this sector increased by 16% 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 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 distributing 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 planning to commence operation with 6 Automobile Freight T rains. Based on market trends , the JV Company will have 25 Automobile Freight Train s in operation, in 3 years..
Adani Logistics’ extensive expertise in the domain, including its growing footprint of multi-modal Logistics Pars, 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 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.About Adani Ports and Special Economic Zone 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, m lti-modal logistic p arks & transportation services and handling of cargo.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 service s 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.Adani Ports and Special Economic Zone Limited closed 2.75% down at Rs 360.20