India’s RITES, which was doing feasibility studies along the IMEEC (India–Middle East–Europe Economic Corridor), is now working on a comprehensive digital interface connectivity project that includes development of a software enabling seamless clearances of cargo between Indian and Middle East ports, as part of the first phase of inter-continental virtual trade corridor.
Some of the areas where studies are being carried out include ease of doing business in cargo exim procedures, provision for a seamless interface for integration of IT systems, logistics connectivity support systems and so on.
Previous agreements that India has signed, sources said, with the UAE include allowing for interlinking of the instant payment platforms – UPI (India) and AANI (UAE) – and it will facilitate seamless cross-border transactions between the two countries.
This follows the MoU on interlinking payment and messaging systems signed previously.
The agreement on inter-linking domestic debit/credit cards — RuPay (India) with JAYWAN (UAE) — is another step towards building financial sector cooperation, sources said.
IMEEC Project on Track
RITES, the Railways export arm, has signed an MoU with Abu Dhabi Ports Group, the developer and regulator of ports and related infrastructure, and Etihad Rail, the UAE Railways developer and operator in Abu Dhabi, last year. They were exploring the feasibility of development of missing links across the existing rail corridor that passes through the UAE, Saudi Arabia, Jordan and Israel.
India, on its part, is exploring connecting West Coast ports (including the upcoming Vadhavan Port) to the Dedicated Freight Corridor; and infrastructure gaps are being identified.
“We are developing the digital interface that will allow seamless movement of goods and their documentation and clearances across multiple ports and checkpoints of India and Middle East. Work is progressing well,” Rahul Mithal, Chairman and Managing Director, RITES Ltd, said.
The IMEEC, a proposed 4,800 km long route comprising ship-to-rail networks, and road transport routes was announced in September 2023. Strategically, the corridor is viewed as a counter to China’s intercontinental Belt and Road Initiative (BRI).
Overseas Expansion
The company is also exploring new overseas opportunities in project consultancy services in the Middle East, while rolling stock exports are being explored in LatAm nations.
“The company is also picking up high-value rolling stock exports to Bangladesh, with at least nine rake prototypes being developed and taken up for clearance with the neighbouring country,” he said
According to Mithal, RITES is “aggressively bidding” for export projects, which do not “involve relying on Line of Credit” options.
Bullish on Export Revenues
The company is anticipating a 20 per cent jump in revenues for FY26, driven by exports picking-up.
Over the last two-to-three months, RITES officials have had meetings with their Bangladesh counterparts to take forward rolling stock supplies there. By H2FY26, the supply of rakes to the neighbouring nation is likely to start.
“FY25 has been a year of consolidation for us. And we reworked business plans, improved project execution and went for aggressive bidding across sectors, even in countries like Middle East, LatAm, Africa, Bangladesh and so on,” he said.
“We are expanding international presence in consultancy projects including in Middle East, rolling stock exports in Africa and LatAm. Revenues from export order book — which stood at ₹1,300 crore in Q3FY end — is expected to come in from Q1FY26,” Mithal added.
For Q3FY25, RITES reported an operating revenue (consolidated), excluding other income, at ₹576 crore, down 16 per cent y-o-y versus ₹683 crore in the year-ago-period. EBITDA and PAT stood at ₹123 crore and ₹109 crore with margins of 21.3 per cent and 17.8 per cent, respectively.
