Summit Alliance Port Limited (SAPL) has signed a memorandum of understanding with Pristine Logistics & Infraprojects Limited, one of the largest integrated rail terminal operators in India, to form a joint venture to improve rail logistics in Bangladesh.

It will mainly work to develop rail-linked inland container depots, container freight stations and multimodal logistics parks at strategically important locations in Bangladesh.

"By entering this MoU with Pristine, we have identified a well-accomplished technical partner to work with us to reach the next milestone in the country's integrated rail logistics journey," said Jowher Rizvi, managing director of SAPL, in a press release.

The ongoing expansion of the country's rail network in combination with the private sector's development of strategically located rail-based cargo hubs will provide new, cost-efficient logistics options, he said.

"So, it will greatly benefit the importers of food commodities and industrial raw materials such as cotton and steel from India as well as Bangladeshi garment exporters."

SAPL is an off-dock service provider and handles around 22.50 percent of the country's containerised exports and 10.50 percent of the import volume, according to the company's website.

"We have been very impressed with Summit Alliance's understanding of the challenges and opportunities of the Indo-Bangladesh trade lane," said Amit Kumar, director of Pristine Logistics.

"We look forward to supporting the trade of Bangladesh and India with this initiative."

Through the development of world-class rail-based cargo hubs, SAPL and Pristine Logistics seek to enhance the existing rail logistics infrastructure in Bangladesh, the press release said.

The joint venture aims to facilitate the needs of the exporters and importers by providing long-haul rail services from Indian locations to the border and interiors of Bangladesh.

Furthermore, it would provide services such as warehousing, empty storage, container repair, packaging, labelling, consolidation and import and export bonding followed by multi-modal transport options for last-mile distribution and connectivity to the gateway ports both via rail and road.

A listed logistics company, SAPL's stocks closed unchanged at Tk 27.20 on the Dhaka Stock Exchange today.