Andhra Pradesh to Shift Bulk Cargo from Visakhapatnam to Mulapeta

28 Jul 2026 CW Team

Minister for Investments and Infrastructure B C Janardhan Reddy said the diversion will focus on dust-generating bulk commodities such as coal and minerals and that operations would be shifted away from the urban limits of the Visakhapatnam Port Authority (VPA). He said the step would significantly reduce air quality hazards and enhance residents' quality of life. The plan was framed as part of wider city development goals.

Authorities indicated that relocating bulk handling will guarantee commercial viability for the Mulapeta port from its initial day of commissioning and will relieve congestion at the existing port. They said the change would optimise vessel turnaround times and lower demurrage costs for shipping lines. Officials added that the shift would stimulate industrial and economic activity across the Mulapeta hinterland.

Under an administrative framework submitted by the VPA, the central port authority proposed acquiring a 49 per cent to 50 per cent equity stake in the Mulapeta Port Special Purpose Vehicle (SPV). VPA sought the allotment of two berths in Phase one and two berths in Phase two on a nomination or Right of First Refusal basis and requested a fair value assessment for the salt lands being transferred to the SPV. The submission set out commercial and valuation matters for negotiation.

A Group of Ministers (GoM) comprising Finance Minister Payyavula Keshav, Investment Minister B C Janardhan Reddy and Tourism Minister Kandula Durgesh will examine the VPA proposals and negotiate terms. The GoM will be assisted by the Special Chief Secretary (Investments and Infrastructure) and the Principal Secretary (Finance) to prepare recommendations for cabinet approval.

Andhra Pradesh government plans a phased transfer of dusty bulk cargo operations from Visakhapatnam Port to the Mulapeta Greenfield Port. The move aligns with Chief Minister N Chandrababu Naidu's vision to make Visakhapatnam a clean, pollution-free and eco-friendly hub for information technology and investments. Officials presented the proposal to reduce urban pollution and improve public health. Minister for Investments and Infrastructure B C Janardhan Reddy said the diversion will focus on dust-generating bulk commodities such as coal and minerals and that operations would be shifted away from the urban limits of the Visakhapatnam Port Authority (VPA). He said the step would significantly reduce air quality hazards and enhance residents' quality of life. The plan was framed as part of wider city development goals. Authorities indicated that relocating bulk handling will guarantee commercial viability for the Mulapeta port from its initial day of commissioning and will relieve congestion at the existing port. They said the change would optimise vessel turnaround times and lower demurrage costs for shipping lines. Officials added that the shift would stimulate industrial and economic activity across the Mulapeta hinterland. Under an administrative framework submitted by the VPA, the central port authority proposed acquiring a 49 per cent to 50 per cent equity stake in the Mulapeta Port Special Purpose Vehicle (SPV). VPA sought the allotment of two berths in Phase one and two berths in Phase two on a nomination or Right of First Refusal basis and requested a fair value assessment for the salt lands being transferred to the SPV. The submission set out commercial and valuation matters for negotiation. A Group of Ministers (GoM) comprising Finance Minister Payyavula Keshav, Investment Minister B C Janardhan Reddy and Tourism Minister Kandula Durgesh will examine the VPA proposals and negotiate terms. The GoM will be assisted by the Special Chief Secretary (Investments and Infrastructure) and the Principal Secretary (Finance) to prepare recommendations for cabinet approval.

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