Business
Contract win and progress update
Contract win and progress update.
About this update from Mercantile Ports & Logistics Limited
[{"type":"text","content":"\n \nRNS Number : 1484A Mercantile Ports & Logistics Ltd 22 December 2017 \n\n22 December, 2017\n \nMercantile Ports & Logistics Limited (the \"Company\")\n(\"MPL\" or the \"Company\")\n \nContract win and progress update \n \nContract win\n \nMPL, (AIM:MPL), which is developing a port and logistics facility in Mumbai, India, is pleased to announce that it has entered into its second binding customer contract to manage cargo at its facility (the \"Contract\").\n \nThe Contract, which is with an Indian-based trading and stevedoring company, has a seven-year term, and is then extendable by an additional two years. Under the contract, MPL will provide berthing facilities and approximately seven acres of backup land suitable for storage of cargo, which is expected to include pulses, fertilizer and construction materials. The area of backup land will increase as the cargo volume is increased. The Contract envisages a minimum of one million tonnes of cargo in year 1, two million in Year 2 and three million in Year 3. \n \nUnder the Contract, the customer shall be responsible for all handling operations and the customer will make a substantial capital investment in the facility through the construction of warehouses for storage. The first cargo under the Contract will land once the customer's warehouses have been constructed, which is expected to be in the second half of February 2018. \n \nProject update\n \nHaving announced that piling had been completed on 3 November, the Company is pleased to report that three berths on the jetty have been completed and are capable of receiving vessels. Channel dredging is complete and dredging in the berth pocket is progressing in line with the jetty becoming functional. The reclaimed land is being readied with the required finished surfaces for the different cargo types. An initial area, approximately 50 acres, will be completed and available as the necessary back-up land by January 2018, in time for the first cargo under the contract announced on 20 August, which is scheduled to land during the third week of January 2018. \nThe team has focused on ensuring that the facility will be part operational by the end of the year and the Company is pleased that this target has been met. The Company is also pleased to report that the vast m...