Danish shipping company Maersk said on Thursday its APM Terminals unit may invest around $2 billion in the Pipavav Port in western India.
Maersk said in a statement it had signed a memorandum of understanding with the Gujarat Maritime Board on increasing capacity at the port with expanded container and liquid cargo handling infrastructure.
"Subject to a long-term concession agreement with Indian authorities, the expansion will significantly enhance the port's capacity and capabilities," it said.
Maersk said it had also signed memorandums of understanding with several local shipyards on exploring deeper cooperation for vessel repair and maintenance activities.
The company also stated that it has registered a new legal entity, Maersk Bharat, in Gujarat and flagged two vessels – Maersk Vigo and Maersk Vilnius – under the Indian flag.
"India possesses significant infrastructure capabilities that Maersk wishes to capitalise on," it said.
(Reporting by Anna Ringstrom, writing by Louise Breusch Rasmussen, editing by Terje Solsvik)
