Adani & NYK Form a Rail Logistics Joint Venture to Enhance Finished Vehicles Transportation Service Network in India

By SiliconIndia   |   Wednesday, 18 July 2018, 13:15 Hrs
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Adani Logistics, a subsidiary of Adani Ports & SEZ Ltd., and NYK Auto Logistics have signed an agreement to form a Joint Venture to transport finished vehicles using Automobile Freight Trains. Post this agreement, the new joint venture 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. Additionally, it is also planning to commence operation with six Automobile Freight Trains, and as per market trends, the venture will have 25 Automobile Freight Trains in operation in three years.

Speaking on this momentous occasion, Karan Adani, CEO, APSEZ, says, “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”.

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 and ALL sees a great opportunity, in collaboration with NALI, to ride this growth.

An integrated logistics service provider, Adani Logistics offers end-to-end logistics solutions in the Indian territory, including - owning and operating container freight stations, ICDs, multi-modal logistic parks & transportation services and handling of cargo. It has Category 1 License from the Ministry of Railways, Government of India which allows it to operate container trains on the broad-gauge network of the Indian Railways throughout India. Adani’s 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 will render a strategic partnership that would, effectively cater to the widespread customer demand in India, through quality services and solutions.

NYK Auto Logistics is subsidiary company of Japan-based Nippon Yusen Kabushiki Kaisha – NYK Group. The company specializes in finished vehicles with value-added services such as PDI operations at OEM plants, port terminal management, IT enabled operations, and end-to-end logistics solutions, including inland yard management & inland transportation.

“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,” says Naotaka Ishizawa, Managing Director, NYK.

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