APL Indialinx freight service launched

New Delhi, Jun 1 (UNI) Singapore-based Neptune Orient Lines (NOL) today launched its American President Lines (APL) Indialinx rail service for the first time in the country with an investment of 60 million dollars.

A product of a joint venture between NOL and Hindustan Infrastructure Projects and Engineering (HIPE), APL Indialinx has a Category 1 license to run freight trains in India for 20 years.

The Railway Ministry had granted license to private companies in January 2006 for running container trains, a service that was the monopoly of government-owned Container Corporation of India (CONCOR), as it was the only player till then.

The first freight train was flagged off yesterday from Loni Inland Container Depot (ICD), near Delhi to Mumbai.

''We have just one train running now. This would be increased to three by the end of this summer and add another four by the end of this year, taking the number to nine by next year,'' said NOL President (South Asia) Kenneth Glenn.

This is the third company starting its freight services after 15 private players were granted licenses.

The company claimed it would be able to reduce transit time by two days hence reducing expenses along with providing quality services.

NOL is also planning to set up an ICD near South Haryana. ''We are looking forward to more expansion but that will take some time,'' said NOL Deputy President and Chief Financial Officer Cedric Foo.

The initial focus of the company will remain the New Delhi-Mumbai line. ''We would later plan expansion across India as per our license,'' added Mr Foo.

The company will also start a vessel service from southern part of the country.

''The transit time is a major choke for the business. The average time for a package to reach the US store from the factory is 6-12 weeks, whereas the same is three to six weeks in case of China,'' said Mr Glenn.

The company plans to bank upon this reducing the transit time and capture a major share of the market.

The group will own the trains and has already placed the orders for the axles required.

APL will provide integrated connectivity with first and last mile services to the customer.

UNI