Mercator Lines (Singapore) Limited – MLS, subsidiary of India’s leading shipping company Mercator Lines Limited (MLL) has entered into an agreement with Tanagra Shipping, S.A. of the Republic of Panama to purchase a geared Panamax dry bulk carrier, “YK Titan”. This is the first vessel acquired by MLS since its IPO listing in Singapore on December 14, 2007. It is currently hired on a time charter basis by MLS.

The said vessel with a capacity of 69,221 dwt is scheduled for delivery around Jul/Aug’08 at a total consideration price of approximately US$ 65.5 million, tentatively proposed to be financed by MLS with its IPO proceeds.

Says Mr. Shalabh Mittal, Managing Director & CEO of MLS, “Our special selection of geared vessels provides us with a distinct versatility that enhances trading flexibility at the ports of the Indian Sub-Continent where port facilities remain underdeveloped. Mercator has the largest fleet of geared Panamaxes amongst the Indian-owned shipping companies, hence providing us with a strong competitive edge in the Indian markets.”

MLS currently operates a fleet of 11 dry bulk vessels, seven owned and four chartered, comprising geared and gearless Panamaxes and Kamsarmaxes with an aggregate capacity of 829,057 dwt. The acquisition of YK Titan will expand MLS’ owned fleet to eight ships comprising four gearless Panamax and Kamsarmax ships and four geared Panamaxes.

In another development, MLS has entered into a long term contract to charter out its upcoming gearless Post-Panamax vessel to a new Chinese customer, Hong Kong-based shipping company, Refined Success Ltd. (“RSL”). RSL is a subsidiary of Chinese shipping conglomerate, COSCO (H.K.) Shipping Co., Limited (“COSCO”) – one of the largest dry bulk shipping companies in the world. The Post-Panamax vessel, which has a capacity of 92,500 dwt, will be chartered to RSL for a period of approximately 35 to 37 months, at a fixed daily rate of US$ 39,500. The charter period for the vessel is expected to start anytime between May 1, 2009 and September 30, 2009.

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