RailRunner System Expands to India

RailRunner, developer of a container-based intermodal transport system, signed a 10-year agreement under which its products will be manufactured, operated, distributed and sold in India by Kolkata-based Stone India through Stone’s wholly owned subsidiary, Stone Intermodal.

RailRunner, which is based in Lexington, Mass., said Stone has already received commercial and operating clearance from Indian Railways, and on completion of technical clearance, the company will enter into an agreement with Indian Railways for train operation with RailRunner’s container-carrying intermodal cars.

“Through introduction of this patented system, for the first time, Indian container freight movement will have an air-cushioned ride and an articulated bogie, thereby enabling freight trains to run at mail/express train speed and permit sophisticated, fragile products to be transported through rail,” said Amit Mondal, Stones’ managing director and CEO. “The system will enable movement of automobiles, automobile components, and refrigerated products seamlessly by rail as well as road,” he said.

Stone said it will invest $32 million in the project in two phases.

The first phase investment will be through internal funding; the facilities for manufacturing are being set up in Stone’s current location with a capacity to build 25 RailRunner freight cars per month.

In Phase II of the project, the company will set up a green-field manufacturing plant with a capacity to build 500 RailRunner freight cars per month. All the major components and systems for these freight cars will be manufactured in house by Stone India. The company expects the cargo market in India will support 50 operating RailRunner freight routes within five years.

Contact Peter T. Leach at pleach@joc.com.