TIDMMPL
RNS Number : 9560O
Mercantile Ports & Logistics Ltd
25 August 2017
25 August, 2017
Mercantile Ports & Logistics Limited (the "Company")
("MPL" or the "Company")
Contract Win, Board Changes and Notice of AGM
Contract win
MPL, which is developing a modern port and logistics facility in
Mumbai, India, is pleased to announce that it has entered into its
first binding customer contract to manage cargo at its port
facility (the "Contract").
Under the terms of the Contract, MPL will start receiving cargo
on the Commercial Operations Date of the Facility, which is
expected to occur during December 2017. MPL has signed the Contract
with an Indian-based company for a five-year term, extendable by an
additional two years. In the first year, MPL has contracted to
handle two million tonnes of cargo (with a guaranteed minimum of
750,000 tonnes). In year two, this will increase to two and a half
million tonnes (with a guaranteed minimum of one million tonnes),
and to three million tonnes in year three (with a guaranteed
minimum of two million tonnes). Under the terms of the contract,
and at today's exchange rate, MPL expects to generate revenue of
approximately GBP 4.7million for every one million tonnes handled,
with a built-in escalation of 7 per cent per annum.
Project Update
The Company is pleased to report that 204 piles have now been
completed out of a total of 248. This means that piles have been
completed for approximately 325 meters of the 400-meter jetty.
Pre-cast beams have been laid for approximately 130 meters of
jetty, with top-deck slabs having been laid for approximately 90
meters. By December 2017, 200 meters of jetty (400 meters of quay
length), which is sufficient to handle four 4,000 DWT vessels, is
expected to be complete in all respects and ready for
operations.
As previously reported, the Company reclaimed approximately 90
acres of land before the start of the monsoon, with additional
reclamation material on site and being used for surcharging.
Reclamation is expected to resume in September following the
conclusion of the monsoon season. Approximately 50 acres of back up
area to support jetty operations are expected to be available by
December 2017.
Opening Ceremony
With the Facility expected to be operational during December
this year, MPL is extremely honoured that the Chief Minister of
Maharashtra, the Honorable Shri. Devendra Fadnavis, who is also the
Chairman of the Maharashtra Maritime Board, has accepted the
Company's invitation to be the Company's Chief Guest at the
Official Opening Ceremony for the Facility. The ceremony is
expected to take place before early January 2018 and a further
update will be made once the specific date, convenient to a number
of key attendees, has been coordinated and confirmed.
Board Changes
Having been with the Company for nearly 12 months as Head of
Finance, Andrew Henderson joins the Board as Chief Finance Officer
after the Company's upcoming AGM. Mr Henderson is a member of the
ICAEW and has over 15 years' experience acting as an accountant and
financial advisor to private and public companies, both in the UK
and internationally. Previously, Mr Henderson worked at Deloitte
and Grant Thornton before setting up his own consultancy
practice.
The Company is also delighted to announce that John Fitzgerald
will join the board as a non-executive director following the
Company's AGM, bringing a background of commercial, operational,
strategic planning, performance management and other experience to
MPL. Mr Fitzgerald has significant port experience, having served
as an Executive Director on the board of Associated British Ports,
the UK's leading port operator, for over 12 years, and served
alongside MPL director, Peter Jones, during that time. Mr
Fitzgerald spent over 18 years in total with Associated British
Ports, leading some of the UK's most significant port
infrastructure projects developed in recent years, and heading up
the Humber Ports, Associated British Port's largest operational
division and the UK's busiest port complex. Mr Fitzgerald also
recently served as Regional Chairman for the Confederation of
British Industry.
The relevant AIM Rules disclosure for Mr Fitzgerald and Mr
Henderson are set out below:
Mr Andrew William Henderson, aged 38, is currently a director of
Henderson Accounting Consultants Limited. Mr John Bernard
Fitzgerald, aged 54, is currently a director of John Fitzgerald
Ltd.
Save as disclosed above, there is no further information
required to be disclosed in accordance with Schedule Two, paragraph
(g) of the AIM Rules.
The Company also announces that Madan Lal Meena will initially
become advisor to the Board of MPL, and is expected to join the
Board after receiving approval from the Government of India, which
is a requirement for all who have served in the Indian
Administrative Services. Mr Meena, has held high ranking positions
within the Government of India, including as Joint Secretary
Finance, as Principal Secretary Ministry of Environment and also as
Director (Port Development) in the Ministry of Shipping. In
particular, Mr Meena was Chairman of Kolkata Port Trust, the oldest
operating Port in in India and, prior to that, was Deputy Chairman
of Haldia Dock complex. The relevant AIM Rules disclosure for Mr
Meena will be made at the time of his appointment to the Board.
Having served as a non-executive Director at MPL for nearly
seven years, Peter Jones has informed the board of his wish to
retire, as he has also done recently as Chair of Milford Haven Port
Authority, and Mr Jones will retire at the Company's upcoming AGM.
Similarly, James Sutcliffe, having been a non-executive since the
Company's IPO, will retire at this year's AGM.
The Company will continue to monitor the composition of the
Board to ensure that there is the optimum blend of leadership,
development, operational and corporate governance experience.
General
MPL confirms that it has posted to its shareholders the Notice
of Annual General Meeting and associated proxy forms. The AGM will
be held at the registered office of the Company at Martello Court,
Admiral Park, St. Peter Port, Guernsey, GY1 3HB on Wednesday 20
September 2017 at 14:00.
Nikhil Gandhi, Chairman of MPL, said, "We are privileged that
the Honourable Chief Minister and other dignitaries across the
State and Country have continued to support our project and,
approximately three years since he inaugurated the project in
December 2014, I look forward to welcoming the Honorable Chief
Minister and dignitaries to the Opening Ceremony. Of course, we
would be pleased to welcome any shareholders too.
I am delighted to welcome John Fitzgerald to the Board. John has
a rare level of significant experience in both port development and
port operations. We also look forward to benefitting from the
breadth of experience and talent that M.L. Meena will bring to the
Company. I have no doubt that his background as Chairman of one of
India's largest and oldest ports will assist MPL significantly.
On behalf of myself and the rest of the Company, I would
particularly like to thank James and Peter for their enormous
contribution to MPL. Their experience was of great assistance,
particularly when overcoming hurdles. They have played an important
role in enabling the project to move into its operational phase and
we wish them well. "
Pavan Bakshi, Managing Director, said, "Announcing our first
contract win is another milestone for the Company and, with a
number of negotiations currently taking place, others are expected
to follow shortly."
Peter Jones said, "I retire from the Company as it approaches
commencement of operations and I am confident that MPL will have an
excellent facility in Karanja. I have enjoyed the challenge of
being part the project from inception and leave a talented team who
will take the business to its next phase. I wish the Company
well."
John Fitzgerald stated, "I'm looking forward to joining the
Board of MPL. I know the exciting opportunities that exist for MPL,
and I am ready to play my part in helping to ensure that the
Company makes a success of this impressive facility, which will be
an asset to both the region and India as a whole."
Enquiries:
MPL Pavan Bakhshi/Jay Mehta
C/O Redleaf Communications
+44 (0) 20 7382 4769
Cenkos Securities plc Stephen Keys/Camilla
(Nomad and Broker) Hume
+44 (0) 20 7397 8900
Redleaf Communications Charlie Geller/Sam Modlin
(Financial PR) +44 (0) 20 7382 4769
MPL@redleafpr.com
This information is provided by RNS
The company news service from the London Stock Exchange
END
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