Vizag set to become East Coast logistics hub with CII’s blueprint

• CII report identifies cargo traffic trends, bottlenecks in push to make Vizag a logistics hub
• Calls for a multi-pronged approach to ensure future-proof supply chain flows
• Advocate for adequate truck terminals and proper roads for freight movements

Visakhapatnam: Confederation of Indian Industry (CII) has identified the present and future cargo traffic and potential bottlenecks to be addressed under the Prime Minister’s Gati Shakti National Master Plan to transform Visakhapatnam into the logistics capital of the East Coast.

In a report entitled ‘Building East Coast Logistics Capitals’ released at a programme organised by CII here on Tuesday, the report showcased AP’s strategic vision for economic growth, cargo movement and sustainable urban development with a special focus on augmenting infrastructure in Visakhapatnam. It called for a multi-pronged approach to ensure future-proof supply chain flows. Describing three industrial corridors criss-crossing over Andhra Pradesh, the report called for short, medium and long term strategies for logistic capacity enhancement, truck parking terminals, dedicated freight corridors, multimodal logistic parks and real-time cargo movement matrix.

The report, prepared by CII Institute of Logistics describes Visakhapatnam as an emerging economic powerhouse. With Visakhapatnam Port Authority (VPA), the third largest port in cargo handling in India and Adani Gangavaram Port, the city’s two ports have a combined cargo handling capacity of 200 million tonnes. Futuristic ports with private participation are being developed by the State Government at Machilipatnam, Mulapeta, Ramayapatnam and a gateway port at Kakinada.

With a GDP of $48.5 billion, Visakhapatnam is emerging as a promising port city. It has already emerged as the tenth biggest city in the country in terms of economy with robust industrial infrastructure. It has seven PSUs, 136 medium and large-scale industries, 7317 manufacturing units, 23 industrial parks and 15 Special Economic Zones. Its population is projected to cross 2.5 million by 2027 and three million by 2035 and reach 8.5 million by 2051. The employee strength which is now 2.3 lakh is expected to reach four million by 2051.

The report expressed concern about inadequate truck terminals saying traffic bound to two ports and various industries like RINL and NTPC call for adequate truck terminals and proper roads for freight and non-freight vehicle movements. Efficient freight vehicle traffic has to be planned.

In his address on ‘Building East Coast Logistics Capitals,’ Executive Director and Head of CII Institute of Logistics KV Mahidhar, said the proposed industrial corridors and other infrastructure projects will certainly strengthen the first mile and last mile connectivity. Challenges like traffic should be addressed in advance in consultation with the stakeholders.

Kakinada Seaports Ltd COO M Muralidhar said there is a need for developing a parallel road to the existing Visakhapatnam-Vijayawada road to cater to the needs of future traffic. He said a focused approach is required for decongesting traffic.

As India has achieved $4 trillion economy, logistics costs need to be curtailed by augmenting infrastructure in all fields for seamless connectivity, said SVK Reddy, CEO, AP Inland Waterways Authority.