Andhra Pradesh targets handling an ambitious 20 per cent of all cargo countrywide within two decades, through the development of additional port terminals and industrial clusters in the vicinity of the leading ports in the State.
According to a senior official of the State’s Industries and Investments (Ports) Department, plans are afoot to develop industrial clusters to create new port cities, alongside the work on upcoming new ports in the State — including Machilipatnam, Mulapeta (formerly Bhavanapadu) and Ramayapatnam ports — which are likely to begin operations within 2-3 years.
The initial investments in these ports, according to government estimates, exceed ₹16,000 crore. A major asset for the State is the Visakhapatnam port, which is managed by the Visakhapatnam Port Authority (VPA).
“The government wants to anchor the development of the State with the development of port-related infrastructure, as the State has a long (974 km) coastline,” the official said.
Spotlight on ports
Ports now assume the prime spot in the development model of Andhra Pradesh after it ‘lost’ several services and pharma industries with the bifurcation of the erstwhile united State in 2014 to create Telangana, with Hyderabad as capital.
“For the development of new infrastructure, Andhra Pradesh is only left with its coastline and agriculture, and hence these are our focus areas,” the official said.
Accordingly, the Andhra Pradesh Maritime Board (APMB), along with the Industries and Investments (Ports) Department, is working on a new maritime policy to achieve an optimal port utilisation rate of 75 per cent by 2030, and train 5,000 professionals by 2028 through the establishment of a maritime university and skill development centres across the State.
The port terminals and industrial clusters will be developed in line with the inherent local advantages. For instance, Machilipatnam port is considered ‘ideal’ for the 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 and serve as the base for an energy cluster, according to APMB’s plans.
Machilipatnam port is being developed under a ‘landlord model’ at a cost of ₹5,155 crore in phase 1, entailing the creation of four berths (three for general goods and one for coal) with 35 million tonnes capacity.
The State government proposes to develop Vadarevu port in Prakasham district and Nizampatnam port in Guntur district through a public-private partnership model on a ‘build, own, operate and transfer’ (BOOT) basis.
Investment magnet
The new maritime policy of Andhra Pradesh envisages a three-pronged strategy for port-led economic development by augmenting port capacity through bigger terminals, improved inter-linking of ports with the hinterland through the development of industrial clusters and urban centres, and a special focus on attracting investments in shipbuilding at the ports.
The ports are being developed with a huge land complex to help attract industrial investment, banking on the fact that water transport is cheaper than other modes. With the completion of work on four upcoming ports, Andhra Pradesh will have seven ports including Gangavaram, Kakinada and Krishnapatnam.
“The government aims to develop a global shipyard model in the State, and the new maritime policy will work towards this goal,” the official said. Apart from new ports, nine state-of-the-art fishing harbours are being developed across the State, including at Uppada, Visakhapatnam, Vadarevu, and Kothapatnam, at a cost of ₹350 crore each.
