Indian, Chinese express firms plan cooperation
Two of the leading locally-owned express transport groups in India and China plan to cooperate to profit from soaring trade between the two fast-growing Asian economies. Bilateral trade between China and India grew 83% to USD18 billion in 2006 and is expected to reach USD40 billion by 2010.
Gati, one of the largest road express operators in India, and China Railway Express International Logistics (CREIL) have signed a memorandum of understanding covering cooperation in courier services, freight forwarding, ocean freight and logistics.
Under the agreement, CREIL and Gati will be responsible for all infrastructure arrangements and transportation of shipments in China and India, respectively. The two firms are reportedly looking into creating a direct road landbridge between India and China through the Himalayas to transport shipments as well as using air and sea connections.
“This arrangement will enable the two companies to complement each other’s strength and service the large base of customers in India and China,” said Mahendra Agarwal, CEO and MD, Gati. The Indian company covers 594 of India’s 602 districts while CREIL, a unit of China Railways, covers 500 cities in the 31 Chinese provinces.
Hyderabad-based Gati has embarked on a major international growth strategy over the last year which is designed to transform it from a domestically-focused company into an international player. CREIL mostly uses the China Railway network for rail-based freight transport but also has a fleet of over 3,500 delivery trucks for nationwide distribution.
