Mercantile Ports & Logistics Ltd Customs Clearance and Lease Extension at Karanja (6374R)
June 18 2018 - 2:00AM
UK Regulatory
TIDMMPL
RNS Number : 6374R
Mercantile Ports & Logistics Ltd
18 June 2018
THE INFORMATION CONTAINED WITHIN THIS ANNOUNCEMENT IS DEEMED TO
CONSTITUTE INSIDE INFORMATION FOR THE PURPOSES OF ARTICLE 7 OF THE
MARKET ABUSE REGULATION (EU) NO. 596/2014. UPON THE PUBLICATION OF
THIS ANNOUNCEMENT, THIS INSIDE INFORMATION IS NOW CONSI DERED TO BE
IN THE PUBLIC DOMAIN
18 June 2018
Mercantile Ports & Logistics Limited
("MPL", or the "Company")
Customs Clearance Update and Extension to the Lease at
Karanja
Mercantile Ports and Logistics (AIM:MPL), is delighted to
announce that the it has received notification under section 7 of
the Customs Act 1962 of the appointment of Karanja Port and
Logistics Limited's ("KPL") Karanja Terminal as a customs port. The
Board considers this to be the major development in the customs
clearance process and consistent with Board's view that receipt of
final customs' clearance is a formality. This notification is
publicly available and is, therefore, expected to be helpful in the
discussions with future customers. Final customs' approval is
expected to be received within a few weeks.
A number of customers have already committed their business to
KPL and the commercial pipeline is looking healthy as more
businesses operating in the supply chain in the area become aware
of the significant logistical advantages shipping via KPL offers.
With this milestone secured, management believe that the first full
month of revenue generation from cargo operations will commence
from the 1(st) of August 2018.
The board is speaking with the Chief Minster's office with
regards to the inauguration of the facility and will update the
market in due course.
The Company is also pleased to announce that its wholly owned
subsidiary, KPL has received confirmation from the Maharashtra
Maritime Board (MMB) that KPL's lease over the land has been
increased from 30 to 50 years, at nil cost. In addition, the MMB
has also granted the Company the approval to develop an additional
200 acres of land on the site and build a further 1 kilometre of
berthing capacity.
The Company considers the lease extension to beyond 2060 to be a
significant endorsement from the key government organisation
responsible for the maritime economy and illustrates the confidence
that the MMB has in MPL. In addition, the Board is excited by the
value creation opportunities that should be possible from the
certainty of an additional 20 years of cash flows. The decision of
the MMB comes on the back of significant interest in the new
facility from a wide range of shipping and cargo businesses. Prime
Minster Modi's government Sagarmala initiative supports port led
development as a key driver for the Indian economy and MPL is proud
to be an important contributor to the delivery of the Prime
Minister's flagship policy.
The Sagarmala program for port led development aims to leverage
India's vast coastlines and waterways to drive industrial
development. Modernisation of India's port sector is targeting
reduced cost and time for transporting goods, benefiting industries
and export/import trade and contributing to Indian growth and
prosperity. Karanja offers new port facilities on India's busy west
coast, creating new jobs and using logistics expertise to deliver
modern supply chain solutions.
In addition to the lease extension, the Directors were delighted
to receive approval to extend the size of the port facility in due
course. The Company's focus remains on completing the existing plan
but, once the facility is fully operational and in response to
customer demand, the Directors will explore the extension of the
facility.
Executive Chairman Nikhil Gandhi welcomed the announcement:
"Today's announcement is tremendous news. The wide-ranging interest
in our new port from trading and logistics businesses will be given
a further boost by the MMB's decision to support our long-term
growth plans. Karanja lies at the heart of India's Mumbai trading
gateway. Everyone involved in this project applauds the strategic
ambition of both our government and our customers. We're proud to
be working with all our stakeholders to deliver on this
vision."
Enquiries:
MPL C/O Redleaf Communications
+44 (0)20 3757 6880
Cenkos Securities plc Stephen Keys/Camilla Hume
+44 (0)20 7397 8900
Redleaf PR Charlie Geller/Fiona Norman
(Financial PR) +44 (0)20 3757 6880
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END
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