Mercantile Ports and Logistics Ltd (LSE:MPL) shares jumped over 10% higher in Thursday morning trade on news its subsidiary has entered into a five-year contract with Lucky Marine Shipping & Logistics PVT Ltd for container handling services at the Karanja facility in Navi Mumbai, India.
Under the contract, Lucky Marine is committed to delivering a minimum of 1,000 twenty-foot equivalent units (TEUs) per month by the end of 2023. This volume is set to increase to at least 2,500 TEUs per month by the end of 2024 and at least 3,500 TEUs by the end of 2025.
Container operations by Lucky Marine are expected to commence in the coming weeks, with necessary handling equipment already being mobilized at the port. The final revenues under the contract will depend on the level of services utilised by Lucky Marine and the volumes handled.
In a statement, Jay Mehta, CEO of Mercantile Ports and Logistics commented: "This is an exciting period for MPL, and we look forward to announcing additional contracts as we build on the momentum we have experienced over the past 12 months."
Around 8.55am, Mercantile Ports and Logistics shares were 10.9% higher at 4.35p.