Addressing the much lionised Maritime India summit, Andhra Pradesh’s chief minister made a strong pitch to investors identifying the state as an ideal destination for investments in the ports and shipping sector.
Highlighting that the state as being ranked no1 in the Ease of Doing Business parameter he said that AP government is looking at developing world class port infrastructure.
‘The GoAP has undertaken development of 3 greenfield ports on an innovative model that mitigates all risks associated with green field port development thereby making the port operation a risk free proposition for the private sector’ said Mr Jagan Mohan Reddy.
These 3 Greenfield ports i.e. Ramayapatnam, Machilipatnam and Bhavanapadu are being developed by the state government post which an operator for these ports will be selected by the GoAP on competitive bidding basis.
Ports in AP
- 1 Major Port
- 5 functional state ports
- 10 other notified state ports
This he said will ensure maximum revenue for GoAP. ‘These all-weather deep drafted ports will be operational by 2023’ informed the CM.
With the addition of these ports it is stated that that an additional cargo capacity of 100 mtpa of cargo per annum will be created in the short term.
Andhra Pradesh currently has 1 major port, 5 functional state ports and 10 other notified state ports which cumulatively handled more than 170 million tonnes of cargo per annum. This is second only to Gujarat.
AP Ports for Cargo handling from 100 to 300 MTPA by 2030
AP currently contributes 4% share of the total Indian exports. ‘We aim to increase this share to 10% share by 2030’ said Mr Jagan Mohan Reddy.
The chief minister also spoke on the importance of developing allied sectors that contribute to the port led economy such as aquaculture, shipbuilding, coast tourism etc. These sectors also need to grow and mature for the port economy to flourish said the CM.
Indian ports handled 1.2 billion Metric tonnes of cargo traffic in 2019-20 wherein about 95% of India’s trading by volumes happens through ports and & 70% by value.