Andhra Pradesh Gears Up to Boost Port-Led Economy

Andhra Pradesh is aiming to handle 20% of India’s total cargo within the next two decades by expanding its port infrastructure and developing industrial clusters near key ports.

According to a senior official from the State’s Industries and Investments (Ports) Department, the government is working on creating new port cities alongside upcoming ports at Machilipatnam, Mulapeta (formerly Bhavanapadu), and Ramayapatnam, all expected to be operational within the next 2-3 years. Initial investments in these projects are estimated to exceed ₹16,000 crore.

With a 974 km coastline, the State sees port development as a critical driver of economic growth, particularly after the bifurcation of Andhra Pradesh in 2014 led to the loss of major services and pharmaceutical industries to Telangana. “For new infrastructure development, Andhra Pradesh is focusing on its coastline and agriculture,” the official said.

To optimize port utilization, the Andhra Pradesh Maritime Board (APMB) and the Industries and Investments (Ports) Department are drafting a new maritime policy. The plan aims to achieve a 75% port utilization rate by 2030 and train 5,000 professionals by 2028 through a maritime university and skill development centers.

Port terminals and industrial clusters will be tailored to local advantages. Machilipatnam port, for instance, is poised to facilitate the export and import of tobacco, granite, pharmaceuticals, and agricultural products, while also supporting offshore energy activities. The port is being developed under a ‘landlord model’ with an initial ₹5,155 crore investment, creating four berths with a total capacity of 35 million tonnes.

Additionally, the government plans to develop Vadarevu and Nizampatnam ports through a public-private partnership (PPP) model under the ‘build, own, operate, and transfer’ (BOOT) framework.

The new maritime policy follows a three-pronged strategy: expanding port capacity with larger terminals, improving hinterland connectivity by integrating ports with industrial hubs, and attracting investments in shipbuilding. Once the four upcoming ports are completed, Andhra Pradesh will have a total of seven major ports, including Gangavaram, Kakinada, and Krishnapatnam.

Beyond commercial ports, the State is also investing in nine state-of-the-art fishing harbors, including those at Uppada, Visakhapatnam, Vadarevu, and Kothapatnam, each costing ₹350 crore.

“The government envisions developing a world-class shipyard model in the State, and the new maritime policy will work toward this goal,” the official added.

HBL