Vizag Port eyes stake in Mulapeta Port SPV to streamline regional cargo

The Visakhapatnam Port Authority (VPA), is exploring a strategic partnership with the Andhra Pradesh Maritime Board (APMB) to acquire a 49% equity stake in the Special Purpose Vehicle (SPV) developing Mulapeta Port in Srikakulam district.

Speaking to The Hindu, a senior VPA official confirmed that discussions were under way between the State government and the Centre. “A final decision is likely to be taken by the end of 2026-27FY,” the official said.

The proposed partnership is aimed to optimise regional cargo distribution along the Andhra Pradesh coast, improve overall operational efficiency, and support Visakhapatnam’s long-term evolution as a major urban and economic centre.

Phased cargo relocation schedule

The arrangement envisages a gradual, phased shifting of bulk commodities—specifically coal, iron ore, and other suitable mineral cargoes—from Visakhapatnam Port to Mulapeta. The execution schedule and extent of relocation are tied directly to the infrastructure readiness, the availability of berths, storage yards, and cargo evacuation facilities at Mulapeta. This phased transition will allow Mulapeta to progressively build its cargo throughput while enabling Visakhapatnam to streamline its cargo profile.

Project scale and capacity

Mulapeta Port is being developed as a greenfield facility by the State government through APMB.

Phase I of Mulapeta Port comprises of four berths—three for general cargo and one for coal— with a planned annual handling capacity of approximately 23.50 million metric tonnes per annum (MMTPA). The estimated project cost of the first phase in ₹3,670 crore.

Operational and urban advantages

The proposed reallocation of bulk cargo handling is expected to quicken vessel turnaround times, enhance berth utilisation at Visakhapatnam, and advance port modernisation goals.

Furthermore, relieving Visakhapatnam Port of heavy mineral cargo handling directly supports the city’s long-term urban decongestion and environmental objectives. VPA intends to leverage its decades of operational experience and industry relationships to accelerate cargo mobilisation at the greenfield site.

Industrial integration and way forward

Beyond port operations, the roadmap incorporates port-led industrial development through a proposed Special Economic Zone (SEZ) on the adjacent 4,000 acres of salt lands. This integrated ecosystem aims to attract anchor manufacturing units, boost value-added logistics, and stimulate regional employment. Through coordinated maritime and industrial expansion, the partnership seeks to reinforce complementary trade corridors across North Coastal Andhra Pradesh.