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(Alliance News) - Mercantile Ports & Logistics Ltd on Monday said it has signed a GBP5.5 million contract with Tata Projects Ltd and Daewoo Engineering & Construction for use of the Karanja facility in India.
Shares in Mercantile P&L were up 12% at 1.60 pence in London in morning trade.
Tata Projects is part of Indian conglomerate Tata Group and has signed the contract along with joint venture partner Daewoo.
Mercantile P&L is expecting to generate GBP5.5 million of revenue from the agreement over the 40 month period, which starts in April. The contract can be extended another 18 months past the end date.
The Daewoo-Tata joint venture will use the Karanja facility, located at Karanja creek in the Raigad district of Maharashtra, as its port - as well as a logistics and engineering base - to build the Mumbai Trans Harbour Link.
The Mumbai Trans Harbour Link is to be the longest sea bridge in India and one of the country's biggest engineering projects with a build cost estimate of around USD2.1 billion.
Mercantile P&L Chair Nikhil Gandhi said: "As the development of our project keeps advancing, we expect to sign up more customers during the course of 2019. It truly is a mark of confidence that world-class companies like Tata Projects and Daewoo see the benefits of our facility. The Mumbai Trans Harbour Link is a symbolic landmark project for the state of Maharashtra but also for the Central Government of India under Prime Minister Modi's leadership."
