Monday, November 2, 2009

India And Japan Freight Infrastructure Ties Strengthen

Sino – Indian Transport Projects Established in a Strong Market
Shipping News Feature

INDIA – The news that the Suzuki Motor Corporation has raised its forward view of profits is a strong indication of where their marketing department have been concentrating their efforts. The figures just posted by the Transport Corporation of India also demonstrate that, in a world of oversupply, low rates and shrinking demand there is one market that can buck the trend.

Suzuki, along with other Japanese traders, has suffered from currency exchange drops and a rapidly sinking US market for the past year or so. The vehicles and parts that the Japanese car giant exports to the subcontinent however have lent a much rosier tint to their profit forecast than that of their competitors.

The faith which the Japanese have in growth in the Indian market can be demonstrated by their willingness to invest in the country’s infrastructure. Just this week an agreement to fund engineering services involved in the new transport projects to the tune of around $30 million, part of a reported $4 billion loan which the countries have agreed on to create the country’s new freight corridors.

This first tranche of investment will be to commence construction of the rail link between Mumbai to Dankuni (Kolkata), West Bengal and Luhiana in the Punjab and was subject to a memorandum of understanding signed by the two nations on the 27th October.

The arrangement continues the funding which has existed between the two countries under their formal arrangement, known as the India-Japan Global Partnership which has been providing finance for such developments since 1958.