Logistics firm Arshiya International expects to spend 1.5 billion rupees to double its rail capacity to 30 rakes by the end of fiscal year ending March 2012, Sajal Mittra, chief executive of its unit Arshiya Rail, said.

The rakes will be used primarily to carry overseas cargo, Mittra told reporters on the sidelines of a FICCI conference.

The firm, which has set up a free trade warehousing zone (FTWZ) in Navi Mumbai, expects its second FTWZ in Khurja near Delhi to become operational in October, he said.

The firm plans to set up one FTWZ each in Chennai, Nagpur and eastern India, with an investment of 6-7 billion rupees each.

Land for the Nagpur FTWZ has been acquired, he added.

India's logistics services providers are steadily expanding their limited supply chain network countrywide to cater to a growing clientele, but limited capabilities and poor infrastructure are slowing them down. (Reuters)