Business
Progress Update and Memorandum of Understanding
Progress Update and Memorandum of Understanding.
About this update from Mercantile Ports & Logistics Limited
[{"type":"text","content":"\n \nRNS Number : 2156Z Mercantile Ports & Logistics Ltd 13 March 2017 \n\n13 March, 2017\n \nMercantile Ports & Logistics Limited (the \"Company\" or \"MPL\")\n \nMPL Update, Memorandum of Understanding to develop operations hub at MPL's facility\nin Mumbai\n \nMercantile Ports and Logistics (AIM:MPL), and its wholly owned subsidiary M/s. Karanja Terminal and Logistics Pvt. Ltd, provide the following update on progress developing its modern port and logistics facility in Navi Mumbai, India, and announces the signing of a Memorandum of Understanding (\"MoU\") with a publicly listed international construction company (the \"Customer\").\n \nMemorandum of Understanding\nMPL is pleased to announce that it has, following the Customer having conducted an extensive due diligence process, entered into a MoU with the Customer. Under the terms of the MoU, the Customer is expected to lease a significant proportion of the Company's completed project in order to develop an operations hub for steel superstructure fabrication. The infrastructure for this hub, which will be constructed by the Customer, would include supply, storage, fabrication, painting, assembly and waterway transport facilities at MPL's port. The land on which this operations hub is to be built is expected to be leased to the Customer for an initial period of three years, with an option to renew annually for a further three years. \n \nThe Company is pleased with the level of interest it has received from other potential customers, who are attracted by the ability to secure priority berthing at the Company's facility. The Company expects to enter into further MoUs in the coming months.\n \nProgress Update\nOver the last quarter, work has progressed well and the Board is pleased with developments. The focus has continued to be on land reclamation, and piling for the jetty. So far this year, the Company estimates that approximately 10 acres worth of reclamation material has arrived on site, some of which has been used for surcharging. Surcharge material (being material that is temporarily placed on top of reclaimed land in order to compact it) can itself be used as reclamation material once it has served its purpose as surcharge material. As at today's date, some 79 acres (or 40 per cent) of the overall reclamation targe...