Wedoany.com Report-Aug. 26, APM Terminals, part of Denmark’s A.P. Moller – Maersk and headquartered in the Netherlands, has signed a memorandum of understanding (MoU) with the Government of Andhra Pradesh through the Andhra Pradesh Maritime Board (APMB) to advance port and terminal development in the state.

As part of the MoU, APM Terminals expressed its intention to invest $1 billion (₹8-9 billion) in modernizing port and terminal infrastructure. The agreement is described as an important step in enhancing maritime facilities and building a globally competitive logistics ecosystem in Andhra Pradesh.

The Chief Minister of Andhra Pradesh, Nara Chandrababu Naidu, emphasized his vision to establish the state as “the logistics hub of the East.” He outlined plans to develop ports, fishing harbours, and fish landing centers at intervals of 50 km along the state’s 1,053 km coastline. This approach aims to strengthen international trade links while also supporting the livelihoods of coastal communities.

Currently, Andhra Pradesh operates five non-major ports, with four additional greenfield ports scheduled to become operational by 2026. With the MoU, the state seeks to align international expertise with local capabilities, positioning itself as a key gateway for maritime trade in eastern India.

APM Terminals has been active in India since 2004 and currently manages two major assets: Gujarat Pipavav Port Limited in Amreli, Gujarat, and Gateway Terminals India at Jawaharlal Nehru Port in Maharashtra. Over the years, the company has introduced advanced cargo-handling technology, supported sustainable operations, and improved efficiency in container and bulk cargo handling.

The planned investment in Andhra Pradesh is expected to create 8,000 to 10,000 direct and indirect jobs, while also encouraging related industrial and logistics growth across the region. APM Terminals stated that its focus under the MoU will be to establish state-of-the-art terminals and redevelop ports in line with international standards. The company will provide technical guidance in identifying port development strategies, designing effective project structures, and applying best practices to strengthen port infrastructure.

Sustainability will also be a priority. The MoU includes commitments to introduce low-emission technologies, energy-efficient cargo-handling systems, and practices aligned with environmental, social, and governance (ESG) standards. APM Terminals highlighted that these measures aim to ensure that Andhra Pradesh benefits from global best practices and long-term technical cooperation.

To oversee the implementation of the agreement, a joint working committee comprising representatives of APM Terminals and APMB will be established by the third quarter of 2025.

In a related development, India and the Netherlands have agreed to set up a green and digital maritime corridor between the Port of Rotterdam and Indian ports. This initiative is designed to deepen cooperation in port digitalization, sustainable shipping, and logistics optimization, further strengthening maritime ties between the two countries.

The MoU between APM Terminals and Andhra Pradesh, combined with broader international collaborations, reflects ongoing efforts to enhance port infrastructure, expand trade capacity, and promote sustainable maritime development in India.