Andhra Pradesh Magazine English June 2016 - Page 49

Two Years of Accomplishments T The Chandrababu Naiu Government has enivisaged a port-led development for the State to help accelerate industrial growth and he is firmly focussed on making AP the logsitics hub for East Asia. he geographical advantages of Andhra Pradesh lend themselves beautifully for a Port-led development of the state, and no one understands this better than Chief Minister N Chandrababu Naidu. No wonder, he has been making every effort to make Andhra Pradesh the most preferred logistics hub and India’s gateway to East and South East Asia by 2029. Naidu has his homework done thoroughly. He saw what Singapore has done in this regard. The island nation has always been a strong performer in the global logistics industry, and transportation and logistics sector contributed between 7 to 9 percent to Singapore GDP in the last decade. and the island nation has been ranked the world's busiest port in terms of shipping tonnage. Given its natural advantages, AP can dig into this resource and build a competitive logistics hub. As a United Nations Public Administration Network (UNPAN) study pointed out, “Andhra Pradesh’s central location within India, its strong transportation links with other parts of the country and the access it provides into India make it a suitable location for a distribution and logistics hub”. Andhra Pradesh has the second longest coastline in India, covering a length of over 974 km stretching between Srikakulam and Nellore with deep draft coastal waters. A network of 14 notified non-major ports and one major port provides strong potential for the State to become India's gateway to the JUNE 2016 world, especially the Asian and South East Asian region. Andhra Pradesh has the unique advantage of having three deep draft ports – Visakhapatnam, Gangavaram and Krishnapatnam that is a critical enabler for attracting bulk cargo from East and South East Asian economies. To reap the potential benefits and position of Andhra Pradesh as India's Gateway to the World, the Government is integrating the development of ports, industrial clusters and, hinterland and efficient evacuation systems through road, rail, inland and coastal waterways under the Sagarmala Project of the Government of India. The Government has also encouraged private participation for port development. Currently there are six ports in the State that are operational and several others under various stages of development. Cargo Movement In 2013-14, the ports in Andhra Pradesh handled over 12.25% (117MT) of the total cargo moved through sea in India. Vishakhapatnam Port accounted for 59 MT, while the non-major ports accounted for over 58.94 MT of the total cargo movement. Andhra Pradesh is the second largest handler of cargo through non major ports in the country and Vishakhapatnam Port is the fourth largest major port in the country in terms of cargo handled. The current capacity of the operational ports in the state is over 180 MT with traffic ANDHRAPRADESHMAGAZINE.ORG of around 120 MT. The state government has its task cut out for providing thrust to the sector. Visakhapatnam-Chennai and Chennai-Bengaluru Industrial Corridors would provide better connectivity for faster evacuation of cargo. A parallel beach road from Ichhapuram to Tada, Sagar Mala first phase covering Visakhapatnam to Kakinada, constitution of AP Maritime Board and promoting Brand Andhra Pradesh by encouraging second generation infrastructure firms like GVK and GMR would remain on top of agenda, the Chief Minister disclosed. The Chandrababu Naidu government has targeted that by 2023: w Ports to handle cargo throughput of over 1000 MT a year w 16 ports to be operational (6 currently operational, 7 under development, 3 identified) w Andhra Pradesh to develop into a hub for ship building and repairs Endowed with a strong industrial base, coupled with natural endowments of mineral reserves the potential for a port led development is certain. The A.P. Port Policy 2015 targetted to achieve 15 per cent share in cargo handling by 2019 and 25 per cent by 2025. Andhra Pradesh will soon have a dedicated Maritime Board governing the integrated planning, development and monitoring of all ports including concessions to stakeholders. v 49