INDIA BUSINESS WORLD - JANUARY 16th - JANUARY 31st
- 2008
TITAGARH IN JV WITH US CO FOR MAKING SPECIAL PURPOSE FREIGHT WAGONS
CHICAGO-headquartered FreightCar America Inc, which is engaged in manufacturing railroad freight cars, has entered into a 51:49 JV with city-based Titagarh Wagons for manufacturing special purpose freight wagons. The two companies inked an agreement at Writers' Buildings in the presence of West Bengal chief minister Buddhadeb Bhattacharjee.
While the US firm will hold about 51% of the total paid up capital of the JV, the balance 49% stake will be held by Titagarh Wagons. Briefing newsmen after the meeting, the chief minister said the new wagon manufacturing unit would ease operations of a dedicated freight corridor, which is slated to come up from Delhi to Mumbai and Delhi to Kolkata.
"I had taken an initiative and spoken to rail minister Lalu Prasad Yadav so that the corridor could be extended to Kolkata. The decision was finalised after the then Japanese Prime minister Shinzo Abe visited India," the state chief minister added.
Elaborating, Mr Bhattacharjee said some 118 acres have been identified near the Kalyani expressway for the proposed project. Initial investment is estimated to be $30-40 million (approximately Rs 160 crore) and the new unit is expected to begin production in 2009.
FreightCar America Inc vicepresident (business development & strategy) Charles Magolske told mediapersons that the JV would concentrate on high axle load and low tare-weight wagons enabling Indian Railways to carry more material at the same running cost.
Outlining the JV's business plans, Mr Magolske said the company manufactures railroad freight cars, with particular expertise in coal carrying railcars. Among other things, FreightCar America will provide design, expertise and state-of-the-art manufacturing technology.
According to Titagarh Wagons chairman JP Chowdhary: "As coal constitutes almost 45% of the total volume of cargo carried by the Railways, construction of a dedicated freight corridor will generate a need for efficient, low-weight and higher axle load wagons."
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