APM Terminals signs Memorandum of Understanding with Andhra Pradesh

Andhra Pradesh is set to redefine its role as the Eastern gateway for maritime commerce and logistics in India by aligning global expertise with local strengths.

The Honourable Chief Minister N Chandrababu Naidu outlined his vision of positioning Andhra Pradesh as the Logistics Hub of the East. As part of this vision, the Chief minister has committed to developing marine infrastructure such as ports, fishing harbours and fish landing centres at every 50 kms of the state's1053 km of coastline to create a dense maritime network that can support inter-national trade and empower coastal communities. Currently, the state has 5 operational non-major ports and 4 green field ports which will be operational by 2026.

As part of this plan, the Government of Andhra Pradesh, through the Andhra Pradesh Maritime Board (APMB), today signed a Memorandum of Understanding (MoU) with APM Terminals, part of the A.P. Moller – Maersk Group, to accelerate port and terminal development in the state. The signing, held in the presence of the Honourable Chief Minister of Andhra Pradesh, marks a major milestone in strengthening maritime infrastructure and building a globally competitive logistics ecosystem.

APM Terminals has been present in India since 2004 and operates two key assets: Gujarat Pipavav Port Limited, located at Amreli District of Gujarat, and Gateway Terminals India, located at the JNPA Port in Maharashtra. The company has been at the forefront of introducing advanced cargo handling technologies, promoting sustainable operations and enhancing efficiency in container and bulk handling, making it a trusted partner for driving growth in India’s maritime sector. Building on this experience, APM Terminals has expressed its intent, as part of the MoU, to invest US $1 billion (₹8-9 billion) to support Andhra Pradesh in developing modernized ports and terminals. This proposed investment is expected to generate 8,000 to 10,000 direct and indirect jobs, while also catalyzing allied industrial and logistics activity across the state.

The core focus of the MoU will be on the establishment of state-of-the-art terminals, the development and modernization of ports to international standards. APMT will leverage its global expertise and has expressed its intent to advise on identifying port development mechanisms, designing optimal project structures, and adopting advanced practices for equipping world-class port infra-structure. The scope will extend to fostering sustainable and green port operations by deploying low-emission technologies, energy-efficient cargo handling systems, and ESG-compliant practices, ensuring that Andhra Pradesh benefits fully from international best practices and long-term technical support. The impact of this MoU is expected to be transformative reflecting the inclusive approach, balancing industrial expansion with socio-economic development.

To ensure effective follow-through, a joint Working Committee with APM Terminals and APMB will be formed by Q3 2025.

The MoU marks a decisive step in Andhra Pradesh’s maritime journey, combining the State’s strengths with APM Terminals' global expertise to transform port & terminal development. It reinforces the Honourable Chief Minister’s vision of AP as Logistics Hub of the East, ensuring long-term prosperity for industry and coastal communities.