AP embarks on significant maritime initiatives

Andhra Pradesh is making major strides toward becoming a key player in India’s maritime future with major investments in four greenfield ports. These new ports—Mulapeta in Srikakulam, Ramayapatnam in Nellore, Machilipatnam in Krishna, and Kakinada SEZ—are set to transform the State’s maritime infrastructure, backed by a Rs 400 crore allocation in the FY 2025-26 budget.

With the long coastline of 1,053 km, Andhra Pradesh is poised to unlock a $20 billion blue economy by 2035. The investments allocated for these ports include Rs 100 crore for land acquisition at Mulapeta (Bhavanapadu) in Srikakulam, Rs 50 crore for Kakinada SEZ, Rs 150 crore for Machilipatnam, and Rs 100 crore funding for the first phase of Ramayapatnam.

The combined cost of the projects reaches Rs 17,689.26 crore, targeting a capacity of 145 million tonnes per annum (MTPA) by 2030 and over 75,000 jobs. Mulapeta, Ramayapatnam, Kakinada SEZ, and Machilipatnam will complement Andhra Pradesh’s existing maritime strength, which includes Visakhapatnam Port—the State’s major port that handled 41.79 million tonnes of cargo in the first half of 2024 alone.

However, the construction of these greenfield ports is progressing at varying speeds. Mulapeta, under Vishwa Samudra Ports, is 27.69% complete and is set for completion by April 2026. Ramayapatnam, managed by Navayuga Engineering, leads at 52.91% completion, with a December 2025 deadline. Kakinada SEZ, a public-private partnership, is at 20.80%, while Machilipatnam faces delays and is at 27.30% progress.

A senior government official explained that Machilipatnam’s delay is due to challenges with the soil structure and the absence of land reclamation in the project. Despite this, the State remains confident that all projects will be completed on time, except for Machilipatnam, which may be delayed by up to six months.

The State is expanding its port infrastructure with 16 non-major ports. For example, Krishnapatnam Port handled 37.786 million tonnes of cargo by November 2024, generating Rs 57.49 crore, while Gangavaram Port processed 16.201 million tonnes, contributing Rs 14.751 crore. AP is developing four fishing harbours and six fish landing centres to promote coastal livelihoods. At the Maritime, Logistics & Infrastructure Development conference on March 16, 2025, Minister BC Janardhan Reddy emphasised AP’s ambition to become a global investment hub.

He outlined the Maritime Policy 2024-29, aiming for 20% of India’s cargo by 2047, a 300 MTPA target through phase II port expansions, and a reduction in logistics costs from 14% to 6-8% of GDP by 2030. He emphasised leveraging technology, improving multimodal connectivity, and building sustainable infrastructure to position AP as a major global trade hub.