APL Logistics VASCOR Automotive, a Delhi-based joint venture between APL Logistics and VASCOR, has placed orders for three sets of rail cars (rakes) to handle finished vehicles in India manufactured by Kolkata-based Texmaco Rail & Engineering, according to Shipping Gazette.

Each rail rake, equipped with 27 rail cars, is capable of carrying 300 vehicles. The delivery of the first rake is expected in three months, with the remaining two to follow in subsequent months.

This investment comes after securing commitments from global original equipment manufacturers (OEMs) in India for use of its AutoLinxSM solution, to be operational by the middle of this year, a statement from APL Logistics said.

"The investment in the rakes is significant as it allows us to move closer to offering our customers in India another innovative solution in finished vehicle distribution," said the JV chairman Bill Villalon.

"We are looking forward to operationalising AutoLinxSM and helping our customers address supply chain complexities, adding further value to their businesses."

AutoLinxSM is a rail-based solution for more reliable, damage-free and cost-efficient distribution of finished vehicles across India. The solution features fully covered, double-decker rail wagons with adjustable middle decks and lock mechanisms.

The complete door-to-door service will include collection of finished vehicles from OEMs plants, vehicle loading and unloading at terminals, long distance rail haulage, and last mile delivery. Tracking and inventory management will also allow OEMs complete visibility of their finished vehicles.

By 2020 India is expected to be the world's third-largest automotive industry, with an eight per cent share in the global passenger vehicle market.