(Correcting share price from euros to pence.)

Mercantile Ports & Logistics Ltd on Friday said subsidiary Karanja Terminal & Logistics Private Ltd has signed a contract with Rudra Marine Services for the handling of liquid commodities.

Mercantile Ports & Logistics is a Guernsey-based company which develops, owns and operates ports and logistics facilities in India.

Under the terms of the three-year deal, Mercantile will provide non-exclusive berthing to Rudra vessels for loading and unloading operations, as well as a one acre plot to develop liquid tankage.

Rudra will be responsible for arranging vessels for transportation of liquid commodities such as base oil, edible oil and bitumen, handling operations and for setting up of three tanks over land leased from Mercantile.

Commercial operations are expected to begin in the second quarter of this year. Initial volumes are anticipated at 14,000 tonnes per month, ramping up to 36,000 tonnes per month over the term of the contract.

Mercantile said it expects the contract to generate revenue of approximately £500,000 per year.

‘This contract sees us making further progress on our goal to embed Karanja into the regional infrastructure system. It also demonstrates Karanja’s multi cargo capabilities and our Facility’s ability to attract customers across the trading spectrum. We are pleased to be working with RMS for the next three years,’ said Chief Executive Officer Jay Mehta.

Mercantile Ports shares were trading 2.9% higher at 6.30 pence each in London on Friday morning.

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