NYK Line (India) and CONCOR to Establish Joint Venture

May 15, 2009

NYK Line (India) Ltd., a wholly owned subsidiary of NYK Line, has signed a memorandum of understanding with the Container Corporation of India Ltd. (CONCOR) to establish a joint venture for the transport of automobiles over rail. Both companies will have a 50 percent stake in the new venture.

A number of automobile manufacturers are scheduled to open or expand their businesses in India by 2010 in response to the rapid growth seen within this industry in the country. Since 2004, NYK has provided an automobile transportation service that makes use of trucks, and in order to meet swelling demand, the company has decided to expand into railway transport.

This new venture will establish a hub-and-spoke network to provide eco-oriented, high-volume rail services complemented by truck transport, thus allowing the company to satisfy expanding demand for automobile transport while, at the same time, reduce carbon emissions.

Trial transport from Delhi and Chennai will be followed by services from three other major areas (i.e., north, south, and west). The eventual goal is for rail transport for automobiles to occur through use of auto racks, but for the time being, the automobiles will be loaded into containers. One container can accommodate five to six small cars or four medium-size cars, and up to 45 containers can be hauled at a time.

NYK Line