REG - Mercantile Ports&Log - Karanja Facility Contract

TidewaterAnnouncement

03/03/2023 08:15

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RNS Number : 7085R  Mercantile Ports & Logistics Ltd  03 March 2023

3 March 2023

Mercantile Ports & Logistics Limited

("MPL" or the "Company")

Karanja Facility Contract

Mercantile Ports & Logistics Limited (AIM: MPL) which is operating and
continuing to develop a port and logistics facility in Navi Mumbai,
Maharashtra, India, is pleased to announce that its subsidiary, Karanja
Terminal & Logistics Private Limited ("KTPL"), has signed a three-year
agreement with Rudra Marine Services ("RMS") for handling of various liquid
commodities at the Company's facility at Karanja.

Under the terms of the agreement, MPL will provide non-exclusive berthing to
vessels of RMS for loading/unloading operations and a one acre plot to develop
liquid tankage, which will be undertaken by RMS. As part of its scope, RMS
will be responsible for arranging vessels for transportation of liquid
commodities such as base oil, edible oil and bitumen, handling operations and
for setting up of three tanks over land leased from MPL. Commercial operations
are expected to begin in Q2 2023, with initial volumes of approx. 14,000 MT
per month, which is expected to ramp up to approx. 36,000 MT per month over
the term of the contract.

Performance under this contract will be subject to final volumes but, in due
course, this contract is expected to generate revenues of approximately £0.5
million per annum for the Company and, importantly, is another new cargo type
and revenue stream for the Company. This contract follows closely on the
recent announcement of the Company's handling of its first containers and the
Company will continue to pursue its strategy to deliver new revenue lines for
the facility at Karanja.

Jay Mehta, CEO of MPL said, "This contract sees us making further progress on
our goal to embed Karanja into the regional infrastructure system. It also
demonstrates Karanja's multi cargo capabilities and our Facility's ability to
attract customers across the trading spectrum. We are pleased to be working
with RMS for the next three years."

 

Enquiries:

   MPL                        C/O SEC Newgate

                              +44 (0) 20 3757 6880

 Cenkos Securities plc        Stephen Keys

 (Nomad and Broker)           +44 (0) 20 7397 8900

 SEC Newgate                  Elisabeth Cowell/ Bob Huxford

 (Financial Communications)   +44 (0) 20 3757 6880

                              mpl@secnewgate.co.uk

 

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