AP targets big returns from shipyards, portsAP targets big returns from shipyards, ports

By Admin

19 May, 2025

For Andhra Pradesh, port-led development is emerging as the driving force behind its aspirations for rapid economic transformation. With a coastline stretching 974 kilometers, the State is embracing the potential of its maritime resources to fuel economic growth, attract investments, and generate large-scale employment. Since the bifurcation in 2014, AP has faced challenges in rebuilding its economic base and urban infrastructure. Now, under the leadership of Chief Minister N Chandrababu Naidu, the State is on a mission to turn its coastline into a growth engine.

A Multi-Pronged Strategy for Coastal Growth

The government is implementing a comprehensive strategy that goes beyond traditional port construction. This includes the upgradation of existing ports, development of integrated economic hubs near port areas, and the creation of modern fishing harbours every 50 km along the coast. These developments are expected to serve as economic multipliers, boosting trade, logistics, and allied sectors.

Shipbuilding and Repair at the Core

A new focal point in the State’s maritime vision is the development of shipbuilding and repair services. The government is preparing to establish a shipbuilding and repair cluster in Dugarajapatnam, Nellore district, with an investment of ₹3,500 crore. This 2,000-acre project will dedicate 1,000 acres to core shipbuilding units, while the remaining area will host supporting ancillary industries.

The planned greenfield port at this location will be integrated with the shipbuilding hub and will feature four dry docks, outfitting jetties, and a ship-lift facility—making it a complete maritime ecosystem. The State is also considering the formation of a Special Purpose Vehicle (SPV) to attract global shipbuilding firms. The SPV aims to facilitate a total investment of ₹26,000 crore and create around 5,000 direct and 30,000 indirect jobs.

Policy Backing with Global Vision

The recently introduced maritime policy of Andhra Pradesh is designed to create a ‘global shipyard model’. The Department of Ports is actively working on the policy framework and implementation modalities. This policy is expected to make AP a preferred destination for international shipping and shipbuilding enterprises.

Furthermore, vessel traffic to Andhra Pradesh is projected to rise significantly over the next 2-3 years, especially with the operationalization of three world-class ports at Machilipatnam, Mulapeta (formerly Bhavanapadu), and Ramayapatnam. These ports are being developed at a combined investment of ₹16,000 crore, marking a major milestone in AP’s maritime infrastructure roadmap.

Boosting the Blue Economy

In a bid to support coastal communities and strengthen the blue economy, the State is also investing in nine new fishing harbours, each at a cost of ₹350 crore. Locations such as Uppada, Visakhapatnam, Odarevu, and Kothapatnam are among the selected sites. These harbours will not only improve the livelihoods of fishing communities but also enhance the supply chain for seafood exports.

Conclusion

Andhra Pradesh’s aggressive push toward shipyards, ports, and coastal development is poised to yield substantial economic returns. By aligning infrastructure growth with job creation and industrialization, the State is positioning itself as a global maritime hub. If the current momentum continues, AP’s coastal ambitions could soon reshape the economic narrative of not just the State, but of the country’s eastern seaboard.