Mercator plans $700mn capex

Mercator Lines has earmarked over $250-300 million for vessel acquisition and $400 million for developing a non-major port.

"Mercator Lines has earmarked $250-350 million for acquiring vessels, including bulk carrier and product tankers, in the current financial year," Atul J Agarwal, joint managing director of Mercator Lines, said.

Agarwal said an Aframax tanker would join MLL's fleet next week in addition to a Super Handymax dry bulk carrier and a Panamax vessel joining in August and September, respectively.

"The estimated cost for acquiring the three vessels is $138 million. We are looking at acquiring more product tankers and bulk carriers," he said.

Agarwal said the current charter market upswing is sustainable and is expected to continue over the next 18 months.

Mercator Lines has signed a memorandum of understanding (MoU) with the Gujarat Maritime Board (GMB) for developing a non-major port in Maroli.

"We are carrying out a techno-economic feasibility study on developing the Maroli port. A decision on this will taken in six months," Agarwal added.

Mercator had submitted an Expression of Interest (EoI) to GMB for developing the Maroli and Vansi-Borsi ports.

Atul Malhotra, general manager of Mercator, added that rather than developing two ports, the company would develop one port with an investment of over $400 million, and the port would be finalised after the techno-economic study.