Inauguration Ceremony of Port & Logistics Facility

RNS Number : 5213S

Mercantile Ports & Logistics Ltd

12 March 2019

 

12 March 2019

Mercantile Ports & Logistics Limited

("MPL", or the "Company")

Inauguration Ceremony of  Port & Logistics Facility

Mercantile Ports & Logistics Limited (AIM: MPL) is pleased to announce that the inauguration ceremony of its port and logistics facility at Karanja Creek, near Navi Mumbai (the "Facility"), took place on 8 March. The event was presided over by the Honourable Chief Minister of Maharashtra and attendees included the Honourable Minister of Fisheries Development, Mr. Mahadev Jankar, the Honourable Minister of State for Ports, Mr. Ravindra Chavan, the Principal Secretary (Ports) and the Vice Chairman of the Maharashtra Maritime Board, along with other state government officials, dignitaries and existing contracted and potential customers of the Facility.

The Company was delighted to receive words of support and encouragement from the Chief Minister and looks forward to Karanja being a key part of the port and logistics infrastructure in Maharashtra, India's most industrialised state. The Company also welcomed Mr Jankar's comments in his address, which identified the Facility as being considered for investment by his ministry as an international marine hub, given its proximity to one of the largest fishing centres in the State. 

The ceremony followed assurances that the full customs' approval process will be concluded shortly and coincided with the Company's first revenue generated from customer cargo operations, discharging steel products for one of India's leading steel producers. Whilst initially small, this operation took place after a successful trial and is another proud milestone for the Company, demonstrating the increasing interest major industrial businesses have in the Facility.

The inauguration was an opportunity for non-executive directors of the Board and for advisers to the Company to meet customers and see, first hand, the growing demand for the Facility. Now that the Facility has reached this point, it is clear that the Company has options as to which types of business it should pursue, as potential customers have varying merits such as speed of implementation, price, infrastructure required and length of contract. The Facility has been designed to be flexible in the type of cargo that it can handle and store and the Board is delighted that this strategy has given the Company multiple options. In the coming weeks, alongside the Company continuing to handle shipments of cargo for immediate delivery to customers, management and the Board will complete the analysis of the longer-term benefits of the various customers with which it is engaged in order to maximise value for shareholders as the Facility matures. 

Speaking at the inauguration, Shri Devendra Fadnavis said, "I am delighted to note that this critical infrastructure project will be hugely beneficial for the industrial and economic growth of Maharashtra. The Karanja facility will serve to reduce transaction time and cost significantly, generate large numbers of direct and indirect employment in the region and boost economic activities in the area".

Following the inauguration, Jay Mehta said, "We are very grateful for the support shown by the Chief Minister and the other state government departments, which has been evident through our development and as we commence operations. At MPL, we share the vision that ports and waterway transportation will play an integral part in the development of this region and we are excited that our facility at Karanja will be both an enabler and beneficiary of this."   

Photographs and video of the inauguration and of the site will be uploaded to the Company's website shortly. 

Enquiries:
MPL	Jay Mehta
	C/O Newgate Communications
	[phone]
Cenkos Securities plc	Stephen Keys
	[phone]
Newgate Communications	Fiona Norman
(Financial PR)	[phone]

 

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