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The Japan Bank for International Cooperation (JBIC; Governor: HAYASHI Nobumitsu) signed a loan agreement
*1 with Joshi Konoike Transport & Infrastructure Pvt. Ltd. (JKTI), an Indian company that is invested in by Konoike Transport Co., Ltd. (Konoike Transport). The loan is co-financed with Sumitomo Mitsui Banking Corporation.
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The loan is intended to provide the funds necessary for JKTI to procure freight cars and provide container transport services within its container train transportation business. Konoike Transport is investing in JKTI jointly with an Indian company Joshico Logistics and Infrastructure Private Limited.
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In the New Medium-term Management Plan (for FY 2022–2024), Konoike Transport regards India, which has experienced rapid economic growth, as one of the most important countries for its business expansion and positions the Indian operations as one of its focus areas. Established in October 2016, JKTI has been operating as a container train operator across India since March 2017 and as an automobile freight train operator for finished cars since March 2019.
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India is expected to develop its logistics network, with a dedicated freight railway operating between Delhi and Mumbai through cooperation with Japan. Under such circumstances, the loan will help further enhance JKTI’s rail cargo capacity in India and support Konoike Transport’s business expansion into the country, thereby contributing toward maintaining and improving the international competitiveness of Japanese industries.
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In line with PM Gati Shakti’s National Master Plan for infrastructure development announced in August 2021, the government of India is making cross-sectoral efforts involving ministries and state governments for the purpose of improving the efficiency of the logistics infrastructure. It also pledged to achieve carbon neutrality by 2070 at COP26 in November 2021. In addition to improving the efficiency of the logistics network promoted by the Indian government, this loan will help realize a decarbonized society in the country by promoting a modal shift from road transport to freight rail transport and reducing associated greenhouse gas emissions.
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As Japan’s policy-based financial institution, JBIC will continue to provide financial support to assist Japanese companies in the overseas expansion of their businesses by drawing on its various financial facilities and schemes for structuring projects and by performing its risk-assuming function.
