Andhra Pradesh to Shift Bulk Cargo from Visakhapatnam Port to Mulapeta

The Andhra Pradesh government is moving ahead with plans to relocate dust-generating bulk cargo operations from Visakhapatnam Port to the upcoming Mulapeta Greenfield Port, in a phased transition aimed at cutting urban pollution and boosting the new port’s viability.

Why is Visakhapatnam shifting bulk cargo to Mulapeta?

Minister for Investments and Infrastructure BC Janardhan Reddy said the shift aligns with Chief Minister N Chandrababu Naidu’s push to position Visakhapatnam as a clean, eco-friendly hub for IT and investment. Coal, minerals and other bulk commodities currently handled within Visakhapatnam Port Authority’s (VPA) urban limits will be redirected to Mulapeta, easing the pollution burden on residents while giving the greenfield port assured cargo volumes from the day it becomes operational.

Visakhapatnam pollution control port policy

According to the minister, moving bulk operations out of Visakhapatnam will also ease congestion at the existing port, cut vessel turnaround times, reduce demurrage costs for shipping lines, and spur industrial growth in the Mulapeta region. The move forms part of the state’s broader policy to keep Visakhapatnam’s port limits free of dust-heavy cargo handling.

What is the Mulapeta Greenfield Port SPV equity stake?

As part of the arrangement, VPA has proposed taking a 49-50 percent equity stake in the Mulapeta Port Special Purpose Vehicle (SPV), a move that would tie the two ports closely together from the outset.

Mulapeta Port berth allocation Phase 1 Phase 2

The port authority has also sought two berths each in Phase 1 and Phase 2 of Mulapeta Port, on a nomination or Right of First Refusal basis, along with a fair valuation of the salt lands being handed over to the SPV.

Andhra Pradesh Group of Ministers port projects 2026 A Group of Ministers, comprising Finance Minister Payyavula Keshav, Investment Minister BC Janardhan Reddy and Tourism Minister Kandula Durgesh, will review VPA’s proposals. The panel, earlier tasked with evaluating the Ramayapatnam Port project, will get support from senior state officials before recommendations go to the cabinet for final approval.