Mercator to ship Indonesian coal to Sri Lanka
Wednesday, June 23 2010 - 04:39 AM WIB
Indian dry bulk shipping firm Mercator Lines (Singapore) Limited announced on Wednesday that it has entered into a four year Contract of Affreightment (COA) with a state owned Sri Lankan company.
Under the contract, Mercator will transport about 650,000 tonnes of coal annually from Indonesia to Sri Lanka for a period of 4 years, beginning from last quarter 2010. The contract is expected to generate US$ 31 million revenue on Time Charter Equivalent basis from its shipping revenues over the next 4 years beginning last quarter 2010.
Under the contract, Mercator Group would offer total logistics solution from Indonesia to the customer?s point of usage.
The port infrastructure facilities in both Indonesia and Sri Lanka necessitate the use of Geared vessels and Mercator can deploy any of its existing fleet of Geared Panamaxs to service the contract, it said. (alex)