At the East Coast Maritime & Logistics Summit, Andhra Pradesh Chief Minister Nara Chandrababu Naidu came up with an ambitious plan on how to develop Andhra Pradesh coastline from Uttarandhra to Simhapuri by developing a strong logistics ecosystem for the state that shall strive towards both social and economic gain of the state.
With a combination of world-class infrastructure, digital transformation and strategic geographic advantages. Andhra Pradesh is set to emerge as the gateway of the East Coast for trade, shipping and logistics. Here are some of the highlights discussed and worked upon at the Summit.
Building Human Capital for a Logistics Economy:Recognizing that a robust logistics ecosystem requires skilled professionals, the state has announced the establishment of dedicated Logistics and Civil Aviation Universities led by Adani and GMR Group. These institutions are one of a kind in India which will not only create a specialized talent pipeline but also foster research, innovation and industry partnerships that can accelerate Andhra Pradesh’s integration into the global supply chain. Thus, not just creating the talent but also expanding the talent mobility beyond the state.
Expanding Port Infrastructure:Andhra Pradesh already has six ports that are under operation and has four more under development. The state’s vision is bold: ensuring the presence of a port or fishing harbour every 50 kilometers along its 1,050-kilometer coastline which is the second longest in India. This maritime expansion positions the state as a natural hub for multimodal cargo movement, linking the heartland of India to international markets. Currently, Andhra Pradesh ranks second in sea cargo transport, servicing five landlocked states that depend heavily on its ports. With the upcoming infrastructure, its role as a lifeline for India’s eastern and central states will only deepen.
Economic Contribution and Industrial Growth:The logistics sector presently contributes around 1% to the state’s Gross State Domestic Product (GSDP). With upcoming initiatives, the government aims to triple this share to 3%, showing how logistics not only boosts the economy but also helps the state attract new industries.Future-ready facilities such as shipbuilding yards, container repair hubs, and defence vessel manufacturing units are being planned at strategic locations. This will not only bring different kinds of industries to the state but also connect Andhra Pradesh to India’s defence and shipbuilding sector where Vizag has already pioneered in being one.
Reviving Inland Water Transport:Another major highlight is the revival of the historic Buckingham Canal, stretching from Kakinada to Chennai. Once fully developed, this inland waterway will provide an economical, sustainable, and environmentally friendly alternative for cargo movement. By decongesting road and rail networks, it will also reduce transportation costs and carbon emissions.
Digital Transformation and Cost Competitiveness:In tune with global trends, Andhra Pradesh is creating a digital logistics platform to track cargo, improve supply chain visibility and connect different transport modes. This will make the system faster, cut delays, and ensure smooth movement of goods through ports, roads, rail and air.
A key target for the government is to reduce logistics costs from the current 13% of GDP to 8%, aligning with global best practices. Lowering logistics costs will make industries in Andhra Pradesh more competitive, attract investments, and strengthen the state’s role in both domestic and international trade.
Conclusion: The Logistics Capital of East Coast India
With its location on the East Coast, long coastline, growing port network, plans to revive waterways and a strong push for digital logistics, Andhra Pradesh is set to become the logistics hub of eastern India.
Chief Minister Chandrababu Naidu’s roadmap goes beyond just building infrastructure. It is a big bet on the future, aiming to turn Andhra Pradesh into a gateway for global trade. By lowering costs, speeding up cargo movement, and attracting new industries, this vision could change the game for the state’s economy.
If successful, it will not only bring more ships and cargo through Andhra Pradesh’s ports but also open doors for industries, create jobs and make the state a key driver of India’s growth story in the years ahead on similar lines of how Gujarat opened up its logistics before.
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