168-km navigation route to shift industrial cargo from roads to waterways; tendering underway under PPP model
Andhra Pradesh is planning a major shift in its freight transportation strategy by developing a 168-km inland waterway corridor connecting Muktyala with Machilipatnam Port at an estimated initial cost of ₹1,700 crore. The project aims to provide industries in the Jaggayyapeta industrial belt with a cost-effective alternative for transporting bulk cargo to the port while reducing pressure on road infrastructure.
The state government has initiated the tendering process for the project, which has received in-principle approval from the Inland Waterways Authority of India (IWAI). The bidding process is expected to be completed by December 2026. The project will be implemented under the Design, Build, Finance, Operate and Transfer (DBFOT) model through a public-private partnership (PPP).
The proposed corridor will comprise an 82-km stretch along the Krishna River from Muktyala to Prakasam Barrage and an additional 86-km stretch through the Bandar Canal to Machilipatnam Port. Once operational, it is expected to facilitate the movement of bulk commodities such as cement, limestone and fly ash from industrial clusters to the port.
Andhra Pradesh Infrastructure and Roads & Buildings Minister BC Janardhan Reddy said the project would help lower logistics costs, strengthen connectivity between industrial hubs and ports, and provide fresh momentum to the state’s industrial development.
The initiative is part of the state’s efforts to unlock the potential of National Waterway-4 (NW-4), which encompasses stretches of the Krishna and Godavari rivers and their canal networks. IWAI has already undertaken navigational development works along the Vijayawada–Muktyala stretch and developed a roll-on/roll-off (Ro-Ro) terminal at Muktyala.
The proposed waterway could offer significant logistics benefits to industries handling heavy and high-volume consignments. Shifting a portion of freight from road to waterways could reduce truck traffic, ease highway congestion, minimise road wear and tear, and improve overall freight efficiency.
However, the project’s operational viability will depend on maintaining adequate navigational depth throughout the year, managing seasonal fluctuations in river flows and addressing infrastructure bottlenecks, including low-level bridges and ageing locks. Reliable cargo-handling facilities and efficient connectivity between factories, waterways and the port will also be critical to ensuring a seamless logistics chain.
For Andhra Pradesh, the Muktyala–Machilipatnam corridor represents an important step towards integrating inland waterways with port-led industrial growth. Its long-term success will depend on timely execution, effective private-sector participation and the development of supporting logistics infrastructure to ensure reliable and commercially viable cargo movement.