Trading Update and Multi-Year Contract Wins

RNS Number : 1794P

Mercantile Ports & Logistics Ltd

16 February 2021

 

16 February 2021

Mercantile Ports & Logistics Limited

("MPL", the "Group" or the "Company")

Trading Update and announcement of new Multi-Year Contracts

Mercantile Ports & Logistics Limited, which is developing and operating its port and logistics facility in Navi Mumbai, Maharashtra, India is pleased to announce an update, including the signing of new contracts for the use of its facility.

The Company's subsidiary, Karanja Terminal & Logistics Private Limited ("KTPL"), has entered into a contract (the "Contract") with Rudra Marine Services (RMS), a Mumbai based, trading and stevedoring company, which handles coal and other bulk cargoes for various end customers. The Contract is for an initial period of five years and MPL is expected to handle approximately 2-3 million tonnes over the next 36 months. RMS is scheduled to commence using the facility in March, with there being a significant ramp up of operations from September 2021 onwards.

Whilst COVID-19 continues to have an impact on the Indian economy, it is pleasing to report that, we have been able to continue work on site and there have been some cargo movements, albeit at low levels. COVID restrictions have, inevitably, caused some timing delays in concluding contract negotiations, with access for site visits curtailed. However, the Company is pleased with progress being made with pipeline customers and has signed a contract with a major cement manufacturer, which will start using the facilities by the end of this month. The contract, which will be implemented over two phases, is envisaged to be in place for twenty years and is with a customer that supplies products to some of the largest companies in the building and infrastructure sector in India. The Company's facility will be handling cement destined for the retail market across Maharashtra and neighbouring states and, under the terms of the contract, KTPL will be responsible for stevedoring operations, inter-carting and providing storage for the cement in a covered warehouse.

Jeremy Warner Allen, Chairman of Mercantile Ports said , "I am very pleased that we have entered into two long term contracts with customers who have carried out significant due diligence over a number of months on various port and logistics facilities in the region and came to the conclusion that the Karanja facility provides modern infrastructure that will aid in the growth of their respective businesses. These contracts highlight the important part that Karanja can play in the growth of Maharashtra and the neighbouring region.

"I am also pleased with the progress being made with the Tata-Daewoo Contract announced previously. I believe that this clearly demonstrates our facility's importance to the region. Over the last few months, we have significantly strengthened our business development team and I look forward to updating the market as we close further contracts with pipeline customers throughout the course of the year".

Jay Mehta, CEO of Mercantile Ports, commented , "We are very excited to be partnering with these two new customers. In both of the contracts, there is the potential for us to provide additional value added services and I look forward to updating the market on this and other progress in the coming months".

Enquiries:

Mercantile Ports & Logistics Ltd	Jay Mehta
	C/O Newgate Communications
	[phone]
Cenkos Securities plc	Stephen Keys/Russell Cook
(Nomad and Joint Broker)	[phone]
Zeus Capital Limited	John Goold (Corporate Broking)
(Joint Broker)	[phone]
SEC Newgate	Adam Lloyd/Isabelle Smurfit
(Financial PR)	[phone]
	[e-mail]

 

END

 

 

TSTSFLESIEFSEEE