Andhra Pradesh’s ports and shipping sector is abuzz with activity with the state government laying keen emphasis on the state’s maritime sector.
With the government marching ahead with the development of 4 greenfield ports the sector has increasingly become an attractive option for investors.
One such key investor/developer that is making some bold bets in this space is Aurobindo Realty and Infrastructure Private Limited (ARIPL) which has undertaken a slew of port projects in the state.
Banking on the India and AP growth story, ARIPL believes its long-term vision is in tune with the growth of the nation.
In an exclusive interview with Vizag Industrial Scan, President, Industrial Parks and ports, ARIPL Mr. Ram Reddy Ojili sheds light on the company’s foray into the ports sector and some of the key projects it is working on.
What are the different verticals of Aurobindo Realty and Infrastructure Private Limited (ARIPL)?
ARIPL is one of the most promising and fastest-growing companies with interests in the infrastructure and related sectors.
ARIPL has 5 divisions – Real Estate, Infrastructure, Ports, Industrial Parks & Mining.
What has attracted the ARIPL group to enter the ports, shipping and Logistics sector?
The promoters of ARIPL have a long-term vision in tune with the growth of the nation. ARIPL has analyzed a major potential for growth in the Ports & industrial parks sector and envisions an opportunity to develop an ambitious state-of-the-art port & industrial park project in the Kakinada district in Andhra Pradesh.
Could you help us understand ARIPL’s port vertical and what are some of the key projects you have undertaken?
ARIPL’s Ports division is associated with 3 seaports in Andhra Pradesh i.e. the existing Kakinada Seaports Limited, the upcoming Kakinada Gateway Port Limited in Kakinada and Ramayapatnam Port.
The greenfield Kakinada Gateway Port will be a game-changer for the region with Phase I being built at a cost of INR 2500 crores spread over 1650 acres.
Initially the port will have 3 berths with a handling capacity of 16 MMTPA & also be able to handle cape size vessels.
In regards to Ramayapatnam port we along with our JV partner have been awarded the EPC contract by Andhra Pradesh Maritime Board for its development. Located in Nellore district of Andhra Pradesh its total project cost is Rs 2650 Cr encompassing 4 berths with a 25 MMTPA capacity.
The construction of this port is in full swing.
Additionally, ARIPL has acquired a 41.12% stake in the existing Kakinada Seaports Limited (KSPL). KSPL has a capacity of 25- 30 MMTPA and handled 16+MMTPA in FY 22-23.
Connectivity to and from ports, seamless cargo evacuation are some key aspects of building a world-class port. How do you plan on addressing some of these points?
Connectivity and cargo evacuation an important parameters in a Port’s success. And with Kakinada Gateway Port being located in the center of the East Coast of India it offers a large hinterland comprising cargo centers in Andhra Pradesh, Telangana, Karnataka, Maharashtra, Chhattisgarh & Odisha.
The port has also planned for adequate storage yards/ warehouses and mechanized loading & unloading facilities for both rail & road movements for faster & efficient cargo operations.
I am happy to inform you that KSEZ(Kakinada Special Economic Zone) has 5200 acres of industrial land comprising both SEZ and DTA. So our customers will not be pained by either sluggish cargo evacuation or lack of storage/warehousing space.
What would you say are some of the biggest challenges that the shipping and ports sector faces in Andhra Pradesh?
Congestion, demurrage, higher freight due to inefficiencies, lack of safer cargo handling & evacuation delays are some of the areas where there is huge scope for improvement in the Port’s sector.
However, with the state government’s keen focus on the Shipping and Ports sector and with the setting up of Andhra Pradesh Maritime Board few years back AP is soon set to compete with the best in the world & become a preferred gateway on the East Coast of India.
