Adani Ports and Special Economic Zone to set up platform company to hold rail assets

Adani Ports and Special Economic Zone (APSEZ), a private multi-port operator, is setting up a platform company to hold all its rail infrastructure assets and for investing in rail entities.

At present, the company’s rail assets are held under Adani Logistics, a wholly-owned subsidiary of APSEZ.

Adani Logistics is a diversified private train operator holding Category 1 permit to run container trains across India.

The plan to create a separate platform company for the rail assets is in early stages; APSEZ will commence working on that soon.

Adani Logistics runs 60 container rakes, five freight terminals, seven grain rakes, and two BOXN-HN rakes under the General-Purpose Wagon Investment Scheme (GPWIS).

GPWIS allows private firms to invest in general purpose rakes for transporting restricted commodities like coal, coke, ore and minerals which till 2018 were completely controlled and regulated by the Indian Railways.

Apart from allowing the movement of all commodities, GPWIS safeguards private players’ investment by ensuring that the wagons procured under the policy will not be merged with the Indian Railways pool which was not the case with previous wagon investment schemes.

The company also runs rail assets in Dhamra port, Odisha and Mundra ports, Gujarat. All these will be put under a platform company which will provide services to customers.

The rail volumes handled by Adani Logistics has doubled to 325,067 TEUs in FY20 from 150,942 TEUs in FY19. The rail volumes jumped 37 percent to 76,925 TEUs in Q1/FY21 from 56,060 TEUs in Q1/FY20.