VPA To Invest in Mulapeta Port, Build SEZ
VPA plans modernize berths, develop SEZ near Mulapeta port, boosting Andhra Pradesh’s economy
Visakhapatnam: The public sector Visakhapatnam Port Authority has submitted its ‘expression of interest’ to the Andhra Pradesh Maritime Board, for making strategic investment in the greenfield Mulapeta deep-draft port in Srikakulam district.
The Mulapeta port, situated 180km north of Visakhapatnam, is strategically located to handle bulk cargoes such as coal, fertilizers, minerals, LNG and LPG. Its proximity to industrial corridors and its all-weather operability offers significant logistics advantages.
Construction activities were in progress. The port is expected to be operational by next year. The estimated project cost is `2,949.69 crore.
In his reply to a mail from this correspondent in Visakhapatnam on Friday, its chairman M Angamuthu said VPA would undertake complete mechanization of the existing three berths under Phase-I with an estimated investment of `900 crore. The scope includes installation of state-of-the-art cargo handling systems which would enhance operational efficiency, reduce vessel turnaround time and ensure environmentally sustainable cargo-handling.
Phase-II envisages development of additional berths, increased storage capacities and supporting facilities based on detailed feasibility studies. This aligns with national flagship initiatives like Sagarmala and PM Gati Shakti, enabling multimodal logistics integration through rail and road connectivity.
The chairman said VPA has submitted a proposal to the Department for Promotion of Industry and Internal Trade (DPIIT) for development of the 5,073 acres of adjacent salt lands into a special economic zone.
The SEZ is envisioned as an integrated industrial hub, attracting investments in sectors such as heavy engineering, petrochemicals, renewable energy, food processing and logistics. With direct connectivity to Mulapeta Port, the SEZ is expected to significantly enhance cargo throughput and competitiveness, the chairman said.
The total investment outlay for the SEZ is estimated at `1,500 crore. Upon implementation, the Mulapeta SEZ would become India’s second SEZ adjacent to a port, following the Mundra SEZ, and serve as a model for port-led industrial development. The combined SEZ and port are projected to generate direct employment for approximately 30,000 to 50,000 persons, with extensive indirect employment, thereby contributing significantly to the economic development of Andhra Pradesh.
The central government has granted a 200km green field coastal national highway connecting the Mulapeta port to the Bhogapuram airport in Vizianagaram district.
The chairman stated that, by 2026, all port berths in Visakhapatnam would be fully mechanized, thereby eliminating dust and pollution during cargo handling.
