18th Jun 2018 10:48
LONDON (Alliance News) - Shares in Mercantile Port & Logistics Ltd soared Monday after the company said a port owned by its subsidiary Karanja Port & Logistics Ltd has been appointed as a customs port.
Shares were trading up 28% at 3.00 pence each.
The Karanja Terminal is a port located at India's Mumbai trading gateway.
Mercantile Port & Logistics said the appointment as a customs port represents a "major development" in the customs clearance process, consistent with board's view that "receipt of final customs' clearance is a formality".
Final customs' approval is expected to be received within a few weeks.
"A number of customers have already committed their business to Karanja Port & Logistics, and the commercial pipeline is looking healthy as more businesses operating in the supply chain in the area become aware of the significant logistical advantages shipping via Karanja Port & Logistics offers," the company said.
Mercantile Port & Logistics expects to generate the first full month of revenue from cargo operations starting August 1.
In addition, the company said Karanja Port & Logistics received confirmation from the Maharashtra Maritime Board that its lease over the land has been increased from 30 to 50 years at no additional cost.
"The company considers the lease extension to beyond 2060 to be a significant endorsement from the key government organisation responsible for the maritime economy and illustrates the confidence that the Maharashtra Maritime Board has in Mercantile Ports & Logistics," the company said
In addition to the lease extension, Mercantile Port & Logistics received approval to extend the port's size in the future.
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