Mercator to invest Rs 4,000 cr

Mumbai May 12

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.

contd on page 2...