Andhra Pradesh Port Policy, 2015

Energy, Infrastructure & Investment Department – Andhra Pradesh Port Policy, 2015 – Orders - Issued.

G.O.Ms.No.14 Dated 27-11-2015.
Read the following
1. Letter No.INCAP (AP)/P/AP Port Policy/39/2014, dated 19-11-2014 from the Vice Chairman & Managing Director, Infrastructure Corporation of AP, Hyderabad.
2. Letters No.DoP/B3/505/2010., dated 06-04-2015, 16-06-2015 and 9-9-2015 from the Director of Ports, GoAP, Kakinada.

          The State of Andhra Pradesh is naturally endowed with a coastline of about 974 km, the third longest in the country, and strategically located to enable it to become a natural gateway
to the Eastern hemisphere.

2. Besides one Major Port i.e. Visakhapatnam Port, the state has 14 Non-Major port locations namely Bhavanapadu, Meghavaram, Kalingapatnam, Bheemunipatnam, Gangavaram,
Nakkapalli, Kakinada SEZ, Kakinada Deep Water, Surasena Yanam/Rawa, Narsapur, Machilipatnam, Nizamapatnam, Vodarevu and Krishnapatnam. Besides these locations, the
Department of Ports, on its own, is operating the Kakinada Anchorage Port for limited operations.

3. The state’s ports are expected to play a crucial role in shaping the future development of the state and the entire East coast. This is borne by several economic and logistics trends.

4. In view of the above, Government of AP is contemplating to bring out a comprehensive Port Policy of Andhra Pradesh to cover the Planning, Development, Operations and Governance
of Non-Major Ports in the State which encourage efficient and competitive environment in Port Development

5. The said AP Port Policy has been examined by the Government in a series of meetings with all the concerned and their suggestions, views have been incorporated in the A.P.Port
Policy. As seen from the Policy, strategic view of the coastline, diversification of cargo, diversity of locations, increasing strategic depth of hinterland, enabling market oriented development, enabling institutional mechanism, integrated view of the supply chain are the issues and challenges proposed to be addressed through port policy.

6. The following are the strategic objectives of the port policy:
- To catalyze large-scale manufacturing-led economic development by leveraging the state’s large coastline and make Andhra Pradesh the gateway integrating India into the global manufacturing supply chain.

- To make the State’s non-major ports the preferred ports for container cargo from Central and North India.

- To encourage greater competition and transparency in port development through private sector.

- To enable commercial viability of port projects

- To set up an institutional mechanism to manage concessions

- To enable efficient and optimal use of scarce and sensitive coastline and coastal land resources, keeping in view future requirements and national security considerations

- Plan for port development to ensure efficient utilization of existing and planned port infrastructure, both common use and captive thereby enhancing capital efficiency of the investments.

- To ensure that state support, including land allotment and other forms of government investments are minimized and well-targeted to yield the maximum value for money.

- To consider ports as a part of logistics supply chain and incorporate a supply chain perspective in planning for current ports and future development

- To enable integrated development of ports along with industries and inland infrastructure connectivity. To create multimodal line and evacuation capacities that precedes port
development and to actively consider connecting the ports to its key markets in primary, secondary and tertiary hinterland

- To be user-centric in terms of efficiency and competitive environment

- To prioritize judicious and efficient capacity utilization and competitiveness of ports, especially the existing ones, subject to this principle, new port capacity development shall be pursued in a planned and objective manner.

- Private sector development of Port infrastructure will be the preferred model

Procurement to be undertaken preferably with the help of model RFP/RFQs of the Ministry of Shipping, Government of India or any other model procurement documents which have competitive models with optimal risk sharing mechanism
including Model Concession Agreements (MCA)

All ports shall operate on commercial and non-discriminatory principles, with open access for commercial cargo. Only in exceptional cases may Captive Ports be allotted, and which will need to be supported by appropriate business cases suitably justifying their inability to use existing/upcoming commercial port infrastructure.

7. The AP Port Policy, 2015 envisages to constitute a dedicated Andhra Pradesh Maritime Board (“Board”) which shall be responsible for integrated planning, development and
monitoring of all ports including concessions. Until the constitution of the Andhra Pradesh Maritime Board, the various functions proposed to be discharged by the Maritime Board shall, in the interim, be discharged by the State Government.

8. The policy shall become operational from the date of its notification until it is reviewed and revised. The provisions of the policy shall be reviewed and revised at the end of every five
years, based on the experience of port development functions in the preceding five years period. The policy can also be reviewed at any time during the tenure if necessary.

9. Government hereby adopts the AP Port Policy, 2015 annexed herewith to this order, which comes into immediate effect.


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