Mercator expanding fleet

The Indian shipping company 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.

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 built in a local shipyard, according to the sources.