JSW Steel in talks with Deutsche Bahn for iron ore transport

NEW DELHI: Jindal South West Steel is in talks with German railroad operator Deutsche Bahn (DB) for a tie up to transport iron ore to the steelmaker's plant at Toranagallu in Karnataka.
    
"The two companies (Deutsche Bahn and JSW) are presently holding talks regarding ore transports from Jindal's own mine to its steelworks at Toranagallu," Steel Business Briefing (SBB) has reported.
    
"We are considering setting up a joint venture, but we can't say yet what the details could look like, or when it could become effective," it quoted a DB spokesman as saying.
    
However, JSW Group Director (Finance) Seshagiri Rao said, "I am not aware about any such thing."
    
Although DB handles the major share of domestic steel transports on rail in Germany, it holds no actual joint ventures with mills in its home country or elsewhere in Europe and this agreement would be its first engagement in India.
    
DB is active in India through its logistics subsidiary Schenker, which has 1,200 employees in the country.
    
"The Indian market is growing strongly for steel and automotive which are major user industries for rail transport," the spokesman said outlining DB's ambitions in India. The company is following the trend of its European automotive customers in setting up plants in the country, SBB stated.