Maersk’s port operating arm, APM Terminals, has signed a memorandum of understanding with India’s Andhra Pradesh Maritime Board to invest 9,000 crore (around $1.1bn) in the development of three key ports in the state.
The agreement, inked in the presence of chief minister N Chandrababu Naidu, covers the upgrading of the Ramayapatnam, Machilipatnam and Mulapeta ports, along with supporting infrastructure. APM Terminals will bring in modern cargo handling systems, develop new terminals, and take charge of operations under the deal.
The project is expected to generate around 10,000 direct jobs, with Naidu describing the partnership as a major step towards making Andhra Pradesh the “eastern gateway” of India’s maritime trade and a logistics hub for the region.
The chief minister directed APM Terminals to prepare a comprehensive logistics plan to link the ports with road, rail, inland waterways and air networks, aimed at reducing transport costs and improving connectivity. He also reiterated the state’s plan to establish a port or harbour every 50 km along its 1,053 km coastline to strengthen trade flows.
The memorandum highlights both Andhra Pradesh’s ambition to leverage its long coastline and Maersk’s growing interest in India. APM Terminals chief Keith Svendsen has previously said the group sees an investment pipeline of about $5bn in ports, terminals and related infrastructure as part of a long-term partnership with the country.
Earlier this year, Maersk signed a separate memorandum with Cochin Shipyard to explore opportunities in ship repair and shipbuilding, with the first Maersk vessel expected to undergo repairs there in 2025. The move aligns with India’s push to climb into the world’s top 10 maritime nations by 2030 and top five by 2047.
India has attracted other global carriers, with MSC, the world’s largest boxship operator, also eyeing multiple opportunities in the country, from container terminals and shipbuilding to maintenance, container manufacturing and vessel partnerships, as well as policy reforms aimed at boosting competitiveness.
