APM Terminals Plans $1B Investment to Develop Indian Ports
APM Terminals Partners to Boost Eastern India Ports
APM Terminals, part of the AP Moller-Maersk group, has signed a significant agreement with the authority managing ports along India’s eastern coastline. This Memorandum of Understanding (MoU), finalized on August 22, aims to develop a network of ports that will serve as an “Eastern Gateway,” enhancing trade opportunities in the region. The initiative is part of a broader strategy to position Andhra Pradesh as a logistics hub, leveraging its extensive coastline of over 620 miles.
Transforming Andhra Pradesh into a Logistics Hub
The agreement is poised to transform Andhra Pradesh into a key logistics center on India’s east coast. Local officials emphasize that the vision includes developing marine infrastructure, such as ports, fishing harbors, and fish landing centers, at intervals of every 30 miles along the coastline. Currently, the region is home to Visakhapatnam, which ranks as India’s third-largest port by volume and is one of the country’s twelve major ports. However, Visakhapatnam primarily operates as a bulker port, with limited container operations.
In total, the eastern coastline features 15 ports across eight coastal districts, including five operational non-major commercial ports and four greenfield projects expected to commence operations by 2026. The collaboration with APM Terminals aims to expedite the development of these ports and terminals, with the company committing to invest approximately $1 billion in modernization efforts. Key focus areas include the Machilipatnam, Mulapeta, and Ramayapatnam ports, which are currently under development.
As of June, Ramayapatnam Port is leading the development progress, with Phase 1 nearly two-thirds completed. Meanwhile, both Machilipatnam and Mulapeta have surpassed 40 percent completion in their initial phases. APM Terminals is recognized as a strategic partner for advancing this next phase, given its expertise in implementing advanced cargo handling technologies and promoting sustainable operations. The company has been active in India since 2004, managing two significant assets: the Gujarat Pipavav Port and APM Terminals Mumbai, the largest container facility in the country.
Investment and Future Prospects
The partnership with APM Terminals is expected to enhance operational efficiency in container and bulk handling across the region. The Gujarat Pipavav Port, which was India’s first public-private port operation, has a capacity of 1.35 million TEUs annually and is strategically located 152 nautical miles from Nhava Sheva in Mumbai. Additionally, APM Terminals Mumbai is undergoing capacity expansion to exceed 2 million TEUs annually, further solidifying its position in the Indian logistics landscape.
With this new agreement, APM Terminals aims to play a pivotal role in the development of Andhra Pradesh’s port infrastructure, aligning with India’s broader trade expansion goals. The focus on modernizing facilities and enhancing operational capabilities is expected to attract more trade and investment to the region, ultimately benefiting the local economy and positioning Andhra Pradesh as a vital player in India’s maritime trade.
