Mercantile Ports & Logistics Ltd on Wednesday said it has handled its first container freight at its facility in Navi Mumbai, India, and has signed a new memorandum of understanding.

Shares in the Navi Mumbai, India-based port operator rose by 3.9% to 6.37 pence each in London on Wednesday morning.

MPL said that whilst initial volumes were small, it was a ‘major milestone’ for the company and evidence of the widening range of cargos that have been handled. It added that this includes steel, cement, olivine flux, project cargo and coal.

Further, the company said it has signed a memorandum of understanding with the operator of a terminal at a ‘major international gateway port’ and with a logistics company. Under the agreement, the three parties will collaborate on the movement of shipping containers and vehicles by coastal waterways between the two facilities.

MPL explained that its facility at Karanja has ‘favourable connectivity’ to the regional road network and therefore more efficient evacuation characteristics.

‘The three parties will work together to explore and evaluate a collaboration in the business of handling container trailers and cargo vehicles between the two facilities, with the aim of moving towards a definitive agreement before the end of the year,’ MPL added.

The company noted that the agreement is not expected to have a material impact on its financial performance in the current financial year. However, MPL expects it to lead to an additional revenue line.

Copyright 2023 Alliance News Ltd. All Rights Reserved.