Arshiya signs rakes lease deal with GIPL

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India’s first private container operator, Arshiya Rail Infrastructure has signed a long term rakes (a line of wagons coupled together as one unit) lease deal with GATX India Private Limited, a subsidiary of GATX Corporation.

The deal will help Arshiya Rail migrate its business to a ‘capex lean model, resulting in lower gearing and improved margins as it expands the business’.

Under this agreement, GIPL will initially provide 10 newly manufactured BLC rakes on operating lease for the next 10 years.

ARIL has not disclosed amount of the deal.

The new rakes will 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.

“India is one of the most exciting countries. The economy is growing at seven percent. We see a lot of potential in India, adding that this is our first investment in the country,” GATX Corp CEO Brian Kenney said.

GATX Corp will invest around $25 million on the ten rakes. ARIL will then acquire these rakes on a lease basis and operate it for freight forwarding within the country.

Around 3.5 billion tonnes of freight movement happens across the country annually and 65 percent of freight moves on road. Moving freight through railways can bring down supply chain costs, he said.

In 2008-09 railway budget, Indian Railways had launched the wagon leasing scheme.

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