Mercator to acquire three dredgers for Rs 400 crore

Shipping company Mercator Lines (MLL) is planning to acquire three dredgers for $100 million (Rs 400 crore) in the next six months. The acquisition will increase the number of dredgers owned by the company to six.

"We are planning to expand our dredging business and for this purpose we are looking to acquire three more vessels. The vessels, like the previous ones, will be acquired from Chinese companies," MLL managing drector Atul J Agarwal said on the sidelines of the 'India Maritime Summit 2008' today.

The company has already placed orders for the additional dredgers, which are expected to join the company's existing fleet within a six-month period, he added.

While the company would deploy the new dredgers on long-term charters for two-three years, it has also initiated talks with various ports and private companies for offering the dredgers on contract.

MLL had earlier announced its intention to foray into the areas of dredging, offshore services and mining, which it considered to have a "high-growth potential".

The shipping manufacturer has two dredgers operating in Sethusamudram, encompassing the Gulf of Mannar and Palk Straits, while it is expecting another vessel to join the fleet within a month.

The company, according to sources, was also looking at providing offshore supply vessels (OSV) services.

Earlier, the shipping line had signed agreements with a Norwegian company for rights to operate nine Panamax vessels of total 644,069 dead weight tonne (DWT) carrying capacity on charter. The shipping company also had an option of purchasing some of these vessels.

The company, through its subsidiary Mercator Singapore, is looking to expand its fleet further by adding another 10-12 vessels.

The company, according to sources, was also looking to foray into the providing offshore supply vessels (OSV) services.

Earlier, the shipping line had signed agreements with a Norwegian firm for rights to operate nine Panamax vessels of total 644,069 dead weight tonne (DWT) carrying capacity on charter. The shipping company also had an option of purchasing some of these vessels.

The company, through its subsidiary Mercator Singapore, is looking further to expand its fleet by adding another 10-12 vessels.