Andhra Pradesh unveils ₹23,000-crore plan to emerge as national logistics hub

Andhra Pradesh is set to redefine its industrial and trade landscape with an ambitious ₹23,000-crore logistics and road infrastructure plan aimed at transforming the state into one of India’s most efficient maritime and logistics hubs.

With a 975-km coastline and 15 operational seaports, including the major Visakhapatnam Port, the state government’s new blueprint seeks to create seamless connectivity between ports, highways, and industrial corridors—positioning Andhra Pradesh as a natural gateway for national and international trade.

Under the plan, ₹18,485 crore will be invested in port and harbor road connectivity projects, while ₹4,500 crore will be directed toward upgrading state highways and Roads & Buildings (R&B) infrastructure.

To oversee the implementation, the state will establish a dedicated Logistics Infrastructure Corporation, which will act as the nodal agency for planning, financing, and coordinating all logistics-related initiatives. “The goal is to build a fully integrated logistics ecosystem that connects transport, warehousing, material handling, and digital networks under one unified system,” a senior official from the Infrastructure and Investment Department said.

The plan addresses a long-standing challenge for industries—from pharmaceuticals and food processing to textiles, engineering, and renewable energy—which have often cited logistics bottlenecks as barriers to growth. The new framework aims to eliminate inefficiencies by aligning infrastructure expansion with industrial and export corridor development.

Central to the initiative are 23 strategic road projects covering 432 km across nine major ports—Visakhapatnam, Kakinada, Krishnapatnam, Gangavaram, Nizampatnam, Mulapeta, Ramayapatnam, Machilipatnam, and the Krishna River terminal. These links are designed to ensure smooth cargo movement between hinterland industries and export terminals, significantly cutting logistics costs and turnaround times.

Simultaneously, the government has launched a massive road modernization drive, targeting nearly 15,000 km of R&B and state highways. This includes:

1,250 km of roads under the NABARD RIDF tranche, to be completed by 2026.

1,433 km of state highways and 5,946 km of district roads** to undergo upgrades and surface improvement.

Plans for 2,104 km of major highways and 4,233 km of category-C roads to be modernised post financial closure.

Andhra Pradesh currently boasts a total road length of about 1.6 lakh km, including 8,360 km of national highways and 12,643 km of state highways, but large segments require capacity enhancement to meet industrial standards.

Officials said the initiative represents more than a physical infrastructure upgrade—it signals a strategic shift in how Andhra Pradesh is aligning its logistics framework with global supply chains. Improved port connectivity and multimodal integration are expected to enhance export competitiveness, attract industrial investment, and strengthen the state’s role as a trade gateway linking Telangana, Odisha, Chhattisgarh, Tamil Nadu, and Karnataka.