Adani Logistics, a subsidiary of Adani Ports, is forming a joint venture with NYK Auto Logistics (India) that will specialise in the transportation of finished vehicles using dedicated automotive freight trains. This initiative aims to capitalise on the rapid growth being seen in India’s automotive sector, and respond to the government’s drive to take traffic off India’s overcrowded roads.
Adani says it expects that the use of rail for finished vehicle distribution will grow even faster than the industry’s growth overall over the next few years, for environmental reasons. Initially the joint venture plans to operate six freight trains a week, rising to 25 in just three years. Adani’s network of inland logistics facilities, as well as its ports, will also support the expansion of the business, the company states.