Mercator Lines inks Rs 1,000 crores deal

New Delhi, May 5: Mercator Lines Ltd, country's second largest private shipping company, today said it has entered into a Rs 1,000 crore deal to acquire four dry bulk vessels totalling 3,05,000 deadweight tonnes (DWT) through its subsidiary Mercator Lines (Singapore) Pte Ltd.

The vessels are expected to join the fleet of the company between June-July this year.

Last month Mercator Lines (Singapore) Pte Ltd successfully raised 51 million dollars by way of issue of convertible bonds which are listed on Singapore Stock Exchange.

During past 12 months, Mercator group has committed to invest about Rs 2,750 crore in the expansion of its fleet and offshore business, a company statement said.

With these acquisitions, Mercator will become a dominant player in the dry bulk segment with a consolidated fleet of of 27 vessels and total capacity of about 2.45 million tonnes.

India continues to import large quantities of coal and with the implementation of the mega power plants at a faster pace, India's coal imports would increase substantially. The Mercator expects the dry bulk freight rates to remain firm on a medium to long-term basis, the statement added.

UNI