With the upcoming three new ports, the logistics sector in Andhra Pradesh is all set to change for the better over the next two years. While the construction works of two ports has already begun, works in the third port is slated to begin soon.
“Including a private SEZ port that is set to come up at Kakinada and three government ports, over ₹16,000 crore is being invested in port development in Andhra Pradesh, the benefits of which could be seen over the next 24 to 36 months,” Ravindranath Reddy, Deputy Chief Executive Officer, Andhra Pradesh Maritime Board (APMB) told businessline.
Few weeks ago, Andhra Pradesh Chief Minister, YS Jagana Mohan Reddy, laid the function stone for the ₹4,362 crore Mulapeta Port — previously called as Bhavanapadu Port — in Srikakulam district. The location of the port can help handle exports and imports from other States including Chhattisgarh, Jharkhand, Madhya Pradesh and Odisha besides providing onward connectivity.
The port is being built in 1,250 acres with an annual capacity of 23.5 million tonnes. It will have four loading and unloading berths to handle exports and imports of coal, multi-purpose containers and the general cargo.
“The State government is keen on speeding up the port development. We are expecting the foundation stone to be laid for Machilipatnam Port sometime next month,” Reddy said. The target was to complete construction of the Greenfield port at Manginapudi on about 1,145 acres. The port has a draft of 14.5 metres and is designed to handle vessels weighing around 60,000 DWT in the initial phase.
Hub for EXIM cargo
All key approvals, including environmental clearance from the Ministry of Environment, Forests and Climate Change, are in place along with funding arrangements and a special purpose vehicle — Machilipatnam Port Development Corporation Ltd has been floated. The Power Finance Corporation had already approved a loan of ₹ 4,500 crore for the project. Detailed project report has been prepared and vetted by RITES Ltd.
Once ready, Machilipatnam port is considered ideal for export and import of tobacco, granite and other natural stones, pharma and agri products. It is also likely to support the eastern offshore activities of ONGC.
The construction of Ramayapatnam port in Prakasam district is going at a brisk pace after the foundation stone for the port was laid by Chief Minister YS Jagan Mohan Reddy in September 2023. The State government is likely to sign a memorandum of understanding (MoU) with a leading corporate conglomerate to develop and run two berths at this Port and run it for the captive use of the steel plant it is building in Kadapa district. Further, the rights to develop and run the two berths at Ramayapatnam Port for an initial concession period of 30 years can be extended twice by 10 years.
All the new ports are deep draft ports which facilitate the movement of big ships with significant scope of logistics support for the big industry. APMB is drawing up a plan for comprehensive realisation of coastal hinterland potential.
Andhra Pradesh was amongst the first maritime States to recognise the imperative need for modernised port infrastructure and the role of private sector in developing the same.
As a major EXIM cargo hub, Andhra Pradesh already enjoys a leading position with a major port in Visakhapatnam and 15 other notified State ports, spread in 8 coastal districts
Apart from Ports, nine state-of-the-art fishing harbours each costing ₹350 crore are being developed across the State in Uppada, Visakhapatnam,Odarevu, Kothapatnam.