Business
Contract Win, Board Changes and Notice of AGM
Contract Win, Board Changes and Notice of AGM.
About this update from Mercantile Ports & Logistics Limited
[{"type":"text","content":"\n \nRNS Number : 9560O Mercantile Ports & Logistics Ltd 25 August 2017 \n\n25 August, 2017\n \nMercantile Ports & Logistics Limited (the \"Company\")\n(\"MPL\" or the \"Company\")\nContract Win, Board Changes and Notice of AGM\nContract win\nMPL, which is developing a modern port and logistics facility in Mumbai, India, is pleased to announce that it has entered into its first binding customer contract to manage cargo at its port facility (the \"Contract\"). \nUnder the terms of the Contract, MPL will start receiving cargo on the Commercial Operations Date of the Facility, which is expected to occur during December 2017. MPL has signed the Contract with an Indian-based company for a five-year term, extendable by an additional two years. In the first year, MPL has contracted to handle two million tonnes of cargo (with a guaranteed minimum of 750,000 tonnes). In year two, this will increase to two and a half million tonnes (with a guaranteed minimum of one million tonnes), and to three million tonnes in year three (with a guaranteed minimum of two million tonnes). Under the terms of the contract, and at today's exchange rate, MPL expects to generate revenue of approximately GBP 4.7million for every one million tonnes handled, with a built-in escalation of 7 per cent per annum. \nProject Update\nThe Company is pleased to report that 204 piles have now been completed out of a total of 248. This means that piles have been completed for approximately 325 meters of the 400-meter jetty. Pre-cast beams have been laid for approximately 130 meters of jetty, with top-deck slabs having been laid for approximately 90 meters. By December 2017, 200 meters of jetty (400 meters of quay length), which is sufficient to handle four 4,000 DWT vessels, is expected to be complete in all respects and ready for operations. \nAs previously reported, the Company reclaimed approximately 90 acres of land before the start of the monsoon, with additional reclamation material on site and being used for surcharging. Reclamation is expected to resume in September following the conclusion of the monsoon season. Approximately 50 acres of back up area to support jetty operations are expected to be available by December 2017. \nOpening Ceremony\nWith the Facility expected to be operational during December this year, MPL is extrem...