New Delhi, July 30: Aiming to enhance India’s rapidly growing rail freight market, Kolkata-based Texmaco Rail and Engineering Limited, global rail leasing company TOAX Group, and TrinityRail Global Inc. from the United States have formed a strategic tripartite partnership. This collaboration seeks to develop a modern and integrated railcar leasing platform in India, making freight transportation more efficient, cost-effective, and contemporary.
Under the agreement, TrinityRail Global will acquire a proposed 32% stake in Texmaco Railcar Leasing Private Limited (TTRL). Currently, both TOAX Group and Texmaco Rail hold 34% stakes in this joint venture.
Additionally, the three companies have announced plans to invest in 100 new railway rakes over the next 3 to 5 years. This partnership will provide services such as wagon manufacturing, leasing, financing, engineering, maintenance, and life-cycle management on a single platform.
Speaking to a news agency, Fabrice Valewski, General Partner and CEO of TOAX Group, stated that their company has been involved in the container leasing business in India for the past 30 years, and the market continues to grow rapidly. He noted that the company ventured into freight wagon leasing about 15 years ago, which is now expanding quickly.
Valewski emphasized that India could soon become the world’s third-largest rail market, presenting immense growth opportunities. He mentioned that their company will bring global experience, transport expertise, and an operating leasing model to strengthen India’s rail freight system.
He praised the reforms in Indian Railways, highlighting that the construction of dedicated freight corridors is among the country’s most visionary decisions. Developing separate corridors for passenger and freight trains has significantly increased freight transport capacity.
Currently, railways account for about 28% of freight transport in India, with the government aiming to raise this figure to 45%. Valewski believes that every step taken by the railways in this direction will reduce transport costs and make Indian industries more competitive globally.
Meanwhile, Patrick Hurst, Senior Vice President (Risk and Investment Portfolio) at TrinityRail, also commended the Indian government’s policies, noting that it has implemented several crucial reforms to promote trade and industrial development.
He stated that the success of any industrial economy relies on a strong and efficient freight rail network. India has laid a solid foundation in this regard, and his company is excited to be part of this growth journey.
To further accelerate the rail wagon leasing sector, Hurst emphasized the need for increased private sector participation. He noted that while the current railway operations are robust, promoting private investment and competition could significantly enhance efficiency, innovation, and investment.
He pointed out that in North America, freight railways are entirely operated by the private sector, leading to improved operational capacity and investment.
In response to a question about Prime Minister Narendra Modi’s vision related to this partnership, Hurst remarked that this initiative aligns perfectly with the ‘Make in India’ campaign and the development of the Indian rail leasing system.
He added that this partnership will strengthen the goals that Prime Minister Modi aims to achieve for Indian Railways and the manufacturing sector.
Additionally, Saroj Kumar Poddar, Chairman of Texmaco Rail and Engineering Limited, stated that this partnership will bring together expertise in manufacturing, leasing, and engineering to provide modern rail mobility solutions for India.
He mentioned that this joint venture will accelerate the government’s goal of increasing the railways’ share in freight transport in the country. It will also aid in developing modern wagon designs, improved maintenance systems, and financial solutions.
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