Gati, a logistics chain solutions company, and Air India, India`s national carrier, have decided to join hands to start a dedicated freighter service.                        
The first of the five freighters has already been launched and will start operating on the Delhi-Mumbai-Bangalore-Delhi sector. The networks of the two players will allow for enhanced connectivity and the freighters will criss-cross the length and breadth of the country and later operate with Nagpur as a hub

Mahendra Agarwal, MD & CEO, Gati said, ``the launch of the dedicated freighter service is aimed at enhancing our connectivity across the entire country. The alliance is expected to take Gati`s business from the present Rs 4,610 million (USD 115 million) to over Rs 10,000 million (USD 250 million) within 2 years.``

``Gati has plans to invest USD100 million in the next three years (June 2009) in setting up Express Distribution Centres (EDC) and in re-engineering of technology and network. We also plan to add another 1 million sq ft of EDC Space in the next 2 years resulting in a total of 2 million sq ft space in all major locations in India``, he added.

Shares of the company gained Rs 3.35, or 2.53%, to close at Rs 135.65. The total volume of shares traded was 403,112 at the BSE. (Wednesday)