AP firm in cutting logistics cost by spending Rs.20,000 crore on infra push

Declaring that Andhra Pradesh is set to become a logistics gateway for South Asia, R&B, Infrastructure & Investment Minister B.C. Janardhan Reddy, said on Friday that for infrastructure push, Rs.20,000 crore is being spent to ensure hassle-free connectivity. He was speaking at the ports and logistics conference organised here by Confederation of Indian Industry (CII) bringing together key government officials, industry leaders, infrastructure developers, and trade experts. The conference focused on unlocking the state’s port potential, improving last-mile connectivity, and promoting multimodal logistics integration.

Reddy highlighted that Andhra Pradesh’s ports now contribute over 5% to the State’s GSDP and support nearly one million jobs. Visakhapatnam Port alone handled 82.62 million tonnes in FY 2024–25, while Krishnapatnam and Gangavaram together handled over 54 million tonnes, reflecting robust growth and private participation. He noted that the government is investing over Rs.20,000 crore to improve connectivity through 1,040 km of new highways and major corridors like Badvel-Nellore and the VCIC rail line. He also spoke about the development of logistics parks, warehousing, and cold chains to modernize supply networks and reduce logistics costs from 15.7% to 7–8%.

The Minister emphasized the strategic importance of the Rs.26,000 crore Dugarajapatnam shipbuilding cluster in Nellore, expected to generate 35,000 jobs and attract large-scale manufacturing investments. In the keynote address, Dr. M. Angamuthu, Chairperson, Visakhapatnam Port Authority, opined that Andhra Pradesh has the right foundations to emerge as a maritime entrepreneurship hub, with its strategic location, proactive governance, and well-established port network. He noted that most ports in the State are currently operating at just 50% capacity, indicating significant untapped potential. To fully realise this, he stressed the need to develop the entire maritime value chain, including skilling, logistics, shipbuilding, and allied industries, alongside core port infrastructure.

Andhra Pradesh Maritime Board Chairman D. Satyanarayana described how Andhra Pradesh is strategically building a robust port-led development model with six operational ports and three new greenfield ports at Machilipatnam, Ramayapatnam, and Bhavanapadu. CII AP Chairman G. Murali Krishna, Chairman, CII Andhra Pradesh, remarked that ports are no longer just trade enablers but strategic national assets influencing diplomacy, jobs, and regional growth. CII Visakhapatnam zone chairman DVS Narayana Raju noted that Andhra Pradesh is now among the top three cargo handling States in India, with non-major ports handling over 117 MMTPA of EXIM cargo. Ports & Logistics Panel, CII Andhra Pradesh convenor G. Sambasiva Rao said Andhra Pradesh has stressed the early completion of key corridors like the 12-lane Sheela Nagar-Anakapalli road to unlock faster cargo movement and support time-sensitive exports.