Arshiya Rail Infrastructure Ltd (ARIL), which is a part of Arshiya International Ltd, a unified supply chain infrastructure and solutions group has embarked on a long-term partnership with GATX India Private Limited (GIPL) to lease its rakes to ARIL. GIPL is a subsidiary of GATX Corporation and is a leading railcar leasing company in the world market. The association would allow ARIL to shift its business to a capex lean model that would ensure lower gearing and improved margins as ARIL expands its business.
The 10-year deal will initially provide 10 newly manufactured BLC rakes for ARIL on operating lease. Furthermore, leveraging GATX’s 114 years of expertise, ARIL plans to introduce world class wagon technology and bring in the highest standards of safety, reliability and efficiency in rake operations. ARIL would also be able to expand its gamut of services in delivery of customised solutions to clients, which is extremely crucial to growth in the Indian rail-freight business.
Gist of the deal
According to Ajay S Mittal, group chairman and managing director of Arshiya International Ltd, “This is a very strategic tie up for Arshiya and the Indian rail space and marks the beginning of a new phase in our evolution. GATX Corporation has a strong technology leadership and a strong legacy in the space. We are extremely confident that this relationship would help us provide improved value to our customers.”
Saurabh Sood, managing director and country head of GIPL, remarked, “We are honoured and proud to establish a relationship with Arshiya Rail Infrastructure– one of India’s leading and pioneering container train operators for our entry into the Indian rail market. We believe the Indian rail space holds great promise and we look forward to a long-term relationship. Arshiya, as one of the largest integrated logistics solution providers in India, is in line with our long-term commitment to meet the expectations of our customers and developing long-term strategic relationships in emerging rail markets.”
An augmented rail capacity is planned to be deployed at Arshiya’s new state-of-the-art rail terminal at Khurja, which will double up as a hub and will offer integrated, cost effective solutions to its customers across India.
Priyanka Roy Chowdhury