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Andhra Pradesh invests in port-led growth

Andhra Pradesh seeks to boost coastal economy with four new ports and added business in existing six.
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Source: Business Line

Andhra Pradesh’s effort to strengthen its maritime logistics capability is on course as work gathers pace in the construction of four new ports and a notable increase in shipments from the existing six ports.

According to data from Andhra Pradesh Maritime Board (APMB), the six ports — Gangavaram, Kakinada Deepwater, Krishnapatnam, Ravva, Kakinada Anchorage (major port), and Visakhapatnam — together handled 189.21 million tonnes during financial year ended March 31, 2024, compared to 175.206 million tonnes a year ago.

Old and new synergy

The Andhra Pradesh government, together with APMB, is investing in port-led economic growth. The four new ports are in various stages of completion.

Work on the ₹2,123-crore Kakinada SEZ Port development project, entrusted to a special purpose vehicle (SPV), includes dredging, breakwater revetment, and construction of berths, port buildings, roads, railway line, and port craft berth, among other facilities.

Ramayapatnam Port in Nellore district is being developed under the ‘landlord model’ — the government will own the infrastructure and lease it to private companies — by the Ramayapatnam Port Development Corporation Ltd at a cost of ₹3,736 crore.

Work on phase I of the ₹5,155-crore Machilipatnam Port development project in Krishna district and ₹4,362-crore Mulapeta Port (previously Bhavanapadu Port) development project in Srikakulam district, are also ongoing under the ‘landlord model’.

Improvement works at Kakinada Anchorage Port, under the Sagarmala project, is underway at a cost of ₹91 crore — with about ₹43 crore coming from Sagarmala and ₹48 crore from APMB.

Boost to coastal economy

“In addition to port development, investments are going towards building four fishing harbours under phase I at a cost of ₹1,523 crore and six fishing harbours under phase II at a cost of ₹1,595 crore,” a senior APMB official said.

Fish landing centres will also be built at a cost of ₹127 crore, aimed at boosting the state’s fishing infrastructure and coastal economic activities. “Additionally, the Andhra Pradesh government has introduced the Smart Port System in the AP Port Department, enabling port users to conveniently pay port tariffs and/or charges and submit applications and/or requisitions online. This is meant to streamline port operations, enhance efficiency, and provide convenience to stakeholders in the maritime sector,” the official said.

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