... Deal to significantly reduce CAPEX and provide scalability for Arshiya Rail
Mumbai : In a landmark tie up Arshiya Rail Infrastructure Ltd (“ARIL&rdquoblink1.gif part of Arshiya International Ltd a unified supply chain infrastructure and solutions group, has signed a long term deal with GATX India Private Limited (“GIPL&rdquoblink1.gif, a subsidiary of GATX Corporation, to lease its rakes to ARIL. GATX globally is one of the world’s leading railcar leasing companies. This relationship will help Arshiya Rail migrate its business to a capex lean model, resulting in lower gearing and improved margins as ARIL expands its business.
Commenting on the deal, Mr. Ajay S Mittal – Group Chairman & Managing Director of Arshiya International Ltd said, “This is a very strategic tie up for Arshiya, as also for the rail space in India 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.”
Arshiya inks a Game - Changing deal in Rail Infrastructure with GATX India Private Limited. This deal will significantly reduce CAPEX and provide scalability for Arshiya Rail.
As part of the 10-year deal, GIPL will initially provide 10 newly manufactured BLC rakes, for Arshiya Rail on operating lease.
Further, leveraging GATX’s 114 years of expertise, ARIL will be able to introduce world class wagon technology and bring in the highest standards of safety, reliability, efficiency in rake operations, besides expanding its gamut of services in delivery of customized solutions to clients, all vital to growing the Indian rail-freight business. An augmented rail capacity through its relationship with GIPL is planned to be deployed at its new state-of-the-art rail terminal at Khurja, which will act as a hub and will offer integrated and cost effective solution to its customers across major Indian cities.
Mr Saurabh Sood, Managing Director and Country Head of GIPL, commented, “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.”
GATX Corporation, with a market capitalization of nearly USD 2 billion is a global leader in railcar leasing with nearly 164,000 railcars owned and managed across North America and Europe. Asia is now a target market of GATX.
