The Hindu Business Line : Mercator to invest Rs 4,000 cr

Mercator Lines has drawn up a Rs. 4,000-crore capital expenditure programme for the next two years to expand its fleet of ships to cash in on the growing dry bulk market and consolidate its presence in high-growth markets.

The investments will be made by Mercator Lines and its Singapore subsidiary, sources close to the company said. A mix of equity and debt will be used to raise the proposed investment.

First to join the fleet will be two panamax carriers at a cost of $65 million each and these will be owned by the company’s Singapore arm. It is also in the process of placing orders for two supramax vessels with a Chinese yard involving a total cost of $100 million.

Apart from these, the company has drawn up plans to acquire a tanker at a cost of $160 million, which is likely to join its fleet within a year, and a dredger, which will be its fourth, at a cost of $20 million.

Dredgers

The company has recently broadened its business canvas by acquiring dredgers, all of which have been leased out to Dredging Corporation of India on time charter. With the domestic dredging market growing, the company plans to acquire two more new dredgers at a cost of $45 million. These dredgers will be made in a local shipyard, according to the sources.

Plans are in the pipeline to acquire a very large ore carrier (VLOC) with a capacity of 2.80 lakh DWT, which is scheduled for delivery in December this year.

It recently acquired two of its chartered-in dry bulk vessels, increasing its owned fleet to nine vessels upon delivery. It presently operates a fleet of 11 dry bulk carriers, including four chartered-in vessels, with an aggregate capacity of 8.29 lakh DWT.

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