LONDON (ShareCast) - (ShareCast News) - Mercantile Ports & Logistics is to develop a facility at its port in Mumbai, India with an engineering and logistics project company.
The AIM-listed company and its subsidiary, Karanja Terminal, has entered into an memorandum of understanding for 200 metres of the quay length of its port to be used for handling cargo for the decommissioning of wellhead platforms for the gas industry.

The deal also includes plans to develop a yard area to be ready in time for the start of operations at the port.

The terms relating to the use of the facility are still to be agreed between the companies, which will be finalised within 60 days from signing of the memorandum of understanding.

Mercantile Ports chief operating officer Jay Mehta said there was increasing interest from local and international businesses in basing operations at the port and logistics facility, which was "encouraging".

"Following the news that construction will begin at the Navi Mumbai Airport later this year, it is clear to see that the [Mumbai] region is developing into a hub for trade and infrastructure," he said.

Shares in Mercantile Ports & Logistics were up 1.61% to 7.88p at 0855 BST.

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