Texmaco Rail & Engineering (TREL) has announced a new joint venture with Navratna PSU Rail Vikas Nigam (RVNL) to expand its presence in the rail infrastructure sector. Under the agreement, RVNL will hold a 51 per cent stake in the new entity, while Texmaco will own the remaining 49 per cent. The JV is expected to close by December 31, 2025, subject to regulatory approvals.

JV to manufacture and maintain freight and passenger rolling stock

The joint venture company will focus on the manufacturing and maintenance of freight and passenger rolling stock, including locomotives, wagons, coaches, trainsets, metro coaches and specialized equipment.

It will also take part in domestic and international tenders and execute engineering, procurement, and construction (EPC) projects in the railway sector. The company plans to operate and maintain railway workshops, depots, and sheds as part of its business model.

Texmaco invests Rs 49 crore to acquire 49% stake

Texmaco, part of the Adventz Group, will acquire its 49 per cent stake through a cash investment of Rs 49 crore. “The JV will leverage the complementary strengths of both TREL and RVNL to pursue mutually beneficial business opportunities in the railway sector,” the company said in its filing.

Collaboration aligns with Make in India and green mobility initiatives

Adventz Group chairman Saroj Kumar Poddar said the JV will expand India’s capacity to deliver world-class rail infrastructure, as per a PTI report. “It will open doors for innovation, exports and digital technologies, making Indian railways globally competitive while supporting the country’s self-reliance journey,” he said.

According to PTI, Texmaco MD Sudipta Mukherjee said, “We will deliver next-generation freight, passenger and metro systems that advance Atmanirbhar Bharat and put India on the global rail map.” RVNL chairman and managing director Pradeep Gaur said the collaboration supports the government’s Make in India and green mobility push.

Texmaco, headquartered in Kolkata, runs seven manufacturing units across West Bengal, Gujarat and Chhattisgarh. It supplies freight cars to Indian Railways, private clients and overseas buyers, and has joint ventures with global firms such as Wabtec and Touax. 

According to Reuters, Warren Buffett’s BNSF Railway and Canadian Pacific Kansas City each stated this week that they would not pursue near-term mergers, easing fears that Union Pacific’s bid would trigger a broader consolidation spree. Their announcements reduce the likelihood of a domino effect in which other major carriers would seek to join forces in order to compete with a potential coast-to-coast giant.

The Union Pacific-Norfolk proposal, unveiled last month, would create the first U.S. railroad stretching from the Atlantic to the Pacific, transforming freight movement for goods such as automobiles and agricultural commodities. Per Reuters, the deal immediately sparked speculation that CSX, a leading eastern carrier, might align with BNSF or Canadian Pacific to keep pace. That scenario now appears less probable after both railroads dismissed the idea of large-scale mergers.

The U.S. freight rail industry has already contracted to just six major carriers from dozens in past decades. Four dominate the market—two in the west and two in the east—leaving shippers with limited options. The Union Pacific-Norfolk plan would tilt this balance further, which has heightened scrutiny from regulators. The Surface Transportation Board is expected to take 17 to 22 months to review the proposal, Reuters reported.

Canadian Pacific emphasized in a statement that it does not believe additional consolidation is necessary and warned that a transcontinental deal could “trigger permanent restructuring” of the industry. CEO Keith Creel said such a merger would pose “unique and unprecedented risks to customers, rail employees and the broader supply chain.” Instead of pursuing acquisitions, the company has chosen to expand cooperation with other carriers, such as its new collaboration with CSX to enhance service between the U.S. Southeast and Mexico.

BNSF’s decision followed a similar rationale. Backed by Buffett’s Berkshire Hathaway, the company privately met with CSX leadership earlier this month but made clear it would not pursue a merger, according to Reuters. Instead, BNSF recently announced new joint services with CSX, underscoring a preference for partnerships over full consolidation.

The reduced appetite for further mergers leaves Union Pacific facing heightened regulatory risks. If its deal with Norfolk Southern proceeds as the only megamerger under review, oversight agencies could be more concerned about one coast-to-coast operator limiting options for smaller rivals. Norfolk has confirmed that Union Pacific would pay a $2.5 billion cash termination fee if the agreement falls apart under certain conditions.

CSX, meanwhile, has indicated it will continue to explore expanded service offerings to strengthen transcontinental routes, even without a merger partner. The company said its board and management remain committed to enhancing shareholder value through new service agreements like those announced with BNSF.

Source: Reuters

Hitachi Rail has signed a Memorandum of Understanding (MoU) with Ontario Tech University to support the launch of Canada’s first undergraduate Railway Engineering Specialisation. Beginning in September 2025, the programme aims to address the growing demand for skilled professionals in Canada’s rail sector, providing students with both academic training and industry experience.

The MoU was signed by Ziad Rizk, Managing Director of Hitachi Rail Canada, and Dr Hossam Kishawy, Dean of the Faculty of Engineering and Applied Science at Ontario Tech University. Under the agreement, Hitachi Rail will contribute to curriculum development, offer student placements, and explore opportunities for joint research.

Students enrolled in the specialisation will gain exposure to areas such as railway systems, safety and signalling, rolling stock, operations, and maintenance. They will also benefit from guest lectures and mentoring provided by Hitachi Rail experts.

Ziad Rizk said:

“This is an exciting opportunity for Hitachi Rail to partner with Ontario Tech University and for the students to leverage experiences from this partnership. Bridging the gap between industry and classroom will shape a workforce trained and ready to meet real-world challenges. We are greatly looking forward to having the chance to contribute to this discipline and provide opportunities for aspiring engineers in the Canadian rail sector.”

A first for Canada

The specialisation will be available to third- and fourth-year students in Manufacturing, Automotive, Mechatronics, and Mechanical Engineering programmes, with Software and Electrical Engineering students able to take courses as electives. It is Canada’s only English-language undergraduate railway engineering programme, preparing students for careers in rail electrification, automation, and climate-resilient infrastructure.

Dr Hossam Kishawy commented:

“Ontario Tech is proud to be home to Canada’s only English-language undergraduate Railway Engineering specialisation, preparing students with the skills industry needs most—rail electrification, automation, and climate-resilient infrastructure. Our new partnership with Hitachi Rail strengthens this mission, ensuring our students gain exposure to global expertise while helping industry address critical workforce needs.”

Supporting Ontario’s transit expansion

The partnership comes as Ontario undertakes the largest transit expansion in North America, supported by a provincial CAD 70 billion investment in public transport. Projects include the expansion of GO Transit, restoration of passenger rail to northern Ontario, and the construction of the Ontario Line subway.

Prabmeet Sarkaria, Ontario’s Minister of Transportation, said:

“Ontario has launched the largest transit expansion in North America, and this first-of-its-kind railway engineering programme will ensure our province has the talent it needs to deliver game-changing rail infrastructure. Our GO Expansion plan includes the Bowmanville Extension, which will make it easier for post-secondary students to access Ontario Tech University’s campus in Oshawa.”

Nolan Quinn, Ontario’s Minister of Colleges, Universities, Research Excellence and Security, added:

“Ontario’s world-class postsecondary education institutions are building a robust engineering workforce of the future. Our government commends this innovative partnership between Ontario Tech and Hitachi Rail, enabling students enrolled in the Railway Engineering Specialisation to get the education and hands-on training they need to keep Ontario moving for decades to come.”

Hitachi Rail has operated in Toronto for more than 40 years and currently employs around 1,200 people in Ontario.

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