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Friday, 25 June 10
INDIAS THIRD-LARGEST SHIPPING COMPANY BAGS US$ 31 MILLION DEAL WITH SL


Daily Mirror reported that, Mainboard-listed and India-owned dry bulk shipping firm Mercator Lines says it has won a US$ 31 million contract in Sri Lanka. This is the first time that an international company has entered the dry bulk transportation industry in the country.

Channel News Asia (CNA) quoted the shipper as saying it has entered into a four-year Contract of Affreightment with a State-owned Sri Lankan company but did not name the Sri Lankan firm. Under the contract, Mercator will transport coal annually from Indonesia to Sri Lanka for a period of four years, beginning from the last quarter of 2010.

CNA reported that Mercator would also offer total logistics solution from Indonesia to the customer's point of usage. It says the contract is expected to generate US$ 31 million in revenue over the next four years.

Mercator adds that it is the first International Shipping Company to enter into the dry bulk transportation market in Sri Lanka. This, it says, would certainly give it the first mover advantage for future growth.

Mercator Group is an Indian shipping corporation with diversified interests in transportation, dredging, oil and gas, ship management services, marine logistics and offshore services. Mercator Lines Ltd. is the parent company and is the third largest private sector shipping company in India based in Mumbai.

It has recently forayed into the offshore business with its subsidiaries Mercator Oil and Gas Ltd and Mercator Offshore Ltd. The company was started by H.K. Mittal.
Source: Daily Mirror



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