Two of the leading locally-owned express transport groups in India and China plan to cooperate toprofit from soaring trade between the two fast-growing Asian economies. Bilateral trade between
China and India grew 83% to $18 billion in 2006 and is expected to reach $40 billion by 2010.Gati, one of the largest road express operators in India, and China Railway ExpressInternational Logistics (CREIL) have signed a memorandum of understanding covering cooperation incourier services, freight forwarding, ocean freight and logistics.
Under the agreement, CREIL and Gati will be responsible for all infrastructure arrangementsand transportation of shipments in China and India, respectively. The two firms are reportedlylooking into creating a direct road landbridge between India and China through the Himalayas totransport shipments as well as using air and sea connections.
“This arrangement will enable the two companies to complement each other’s strength andservice 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 yearwhich 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 fleetof over 3,500 delivery trucks for nationwide distribution.
