Mercantile Ports and Logistics Ltd shares rose more than 10% in Thursday morning trade after it was announced that its subsidiary has signed a five-year deal with Lucky Marine Shipping & Logistics PVT Ltd for container handling services at its Karanja site in Navi Mumbai, India.
Under the terms of the contract, Lucky Marine is committed to delivering at least 1,000 TEU (Twenty Foot Equivalent Units) per month by the end of 2023. This volume should increase to at least 2,500 TEU per month by the end of 2024 and at least 3,500 TEU by the end of 2025.
Lucky Marine’s container operations are expected to begin in the coming weeks, with the necessary handling equipment already being mobilized at the port. The final revenue under the contract depends on the scope of services used by Lucky Marine and the volumes handled.
In a statement, Jay Mehta, CEO of Mercantile Ports and Logistics, commented, “This is an exciting time for MPL and we look forward to announcing additional deals as we build on the momentum we’ve seen over the past 12 months have.”