Adani Logistics (ALL), a subsidiary of Adani Ports & SEZ (ASPEZ), has signed an agreement with NYK Auto Logistics (India) (NALI) to strengthen the transportation service network in India.
The joint venture will specialize in the efficient transportation of finished vehicles, using automobile freight trains.
The automobile sector is growing rapidly in the country, where loading activity has increased by 16% between 2017 and 2018.
In addition to this, the Indian government are committed to reducing the nation’s carbon footprint through alternative means of transportation, facilitating the rise in traction for the rail mode.
Adani and NYK, who are focused on meeting widespread customer demand throughout India, are planning to commence operation with six automobile freight trains.
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Based on market trends, the joint venture company project that 25 automobile freight trains will be in operation in three years.
Commenting on the agreement, Karan Adani, CEO of ASPEZ, said: “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, utilizing 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.”
Naotaka Ishizawa, Managing Director of NALI, stated: “NALI’s strength in end to end Finished Vehicle Logistics & handing coupled with our Digitization capabilities & customer portfolio gives us a good footprint in India.
“This partnership now allows us to strengthen our inland capabilities with a reliable association focusing on quality & visibility in the supply chain.”
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