LONDON (Alliance News) - Mercantile Ports & Logistics Ltd said on Friday it saw a slightly widened pretax loss for the first half of 2018, as it continues to develop its port facility in Mumbai, India.
Shares in the ports & logistics operator were up 13% at 2.44 pence on Friday.
Mercantile reported a loss of GBP1.7 million for the six months to the end of June, widening slightly from a loss of GBP1.6 million the year before. It did not post any revenue for the period.
Mercantile said it is making progress in the development of its Mumbai port and logistics facility, with the facility now physically ready to receive vessels, and the company being given a lease extension to beyond 2060.
However, there was frustration at the customs approval process, which is needed to enable the facility to operate and has taken longer than anticipated.
As at September 28, the 400 metre general cargo jetty and the 200 metre bulk jetty are both 90% complete, and everything required to be ready for operations is being put in place, including the installation of fenders and bollards.
"Although we had hoped to be operational before these results were announced, once the customs personnel are on site, we will be ready to operate. Whilst we recognise that the delays experienced will require us to rebuild trust with investors, we remind ourselves that we are a short period from being operational and making a huge step in achieving our vision of creating a world class, modern, maritime and logistics facility to support India's and other emerging countries' burgeoning trade demands, and to create value for all our stakeholders," said Executive Chairman Nikhil Gandhi.
Mercantile Ports & Logistics (MPL)