16th Feb 2021 10:12
(Alliance News) - Mercantile Ports & Logistics Ltd on Tuesday said its subsidiary Karanja Terminal & Logistics Private Ltd has signed a contract with Rudra Marine Services, while another contract is inked with an unnamed "major" cement manufacturer for use of its facility.
Rudra Marine Services is a Mumbai, India-based trading and stevedoring company, which handles coal and other bulk cargoes for customers.
Mercantile Ports - an Indian port and logistics facility developer - said the Rudra Marine Services contract is for an initial period of five years, with Mercantile Ports expected to handle between two million and three million tonnes of cargo over the next 36 months. Rudra Marine Services is scheduled to start using Mercantile Port's facility in Navi Mumbai, Maharashtra, in March.
Shares in Mercantile Ports more than doubled to 0.82 pence in London on Tuesday.
Mercantile Ports said the contract with the cement manufacturer will be implemented over two phases and is planned to last for 20 years. The contract is with a customer that supplies products to some of the largest companies in the building and infrastructure sector in India, it added. Mercantile Port's facility will be handling cement for the retail market across Maharashtra and neighbouring states by the end of February, while Karanja will be responsible for stevedoring operations, inter-carting and providing storage for the cement in a covered warehouse.
"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," said Chair Jeremy Warner Allen.
Mercantile Ports said despite the continued impact of Covid-19 on the Indian economy, it has 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," it added.
By Zoe Wickens; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Mercantile Ports & Logistics