(Sharecast News) - Mercantile Ports & Logistics announced on Friday that its subsidiary, Karanja Terminal & Logistics (KTPL), has signed a three-year agreement with Rudra Marine Services (RMS) for handling various liquid commodities at the company's facility at Karanja.
The AIM-traded firm said that under the agreement, it would provide non-exclusive berthing to vessels of RMS for loading and unloading operations and a one-acre plot to develop liquid tankage
RMS would be responsible for arranging vessels for the transport of liquid commodities such as base oil, edible oil, and bitumen.
The company said it would also handle operations, and set up three tanks over the land leased from MPL.
MPL said commercial operations were expected to begin in the second quarter, with initial volumes of around 14,000 MT per month, which was expected to ramp up to about 36,000 MT per month over the contract term.
The performance of the contract would be subject to final volumes, but it was expected to generate revenues of £0.5m yearly for the firm, bringing a new cargo type and revenue stream to MPL.
"This contract sees us making further progress on our goal to embed Karanja into the regional infrastructure system," said chief executive officer Jay Mehta.
"It also demonstrates Karanja's multi cargo capabilities and our facility's ability to attract customers across the trading spectrum.
"We are pleased to be working with RMS for the next three years."
At 1341 GMT, shares in Mercantile Ports and Logistics were down 0.41% at 6.1p.
Reporting by Josh White for Sharecast.com.
Mercantile Ports & Logistics (MPL)