The Andhra Pradesh Maritime Board (APMB) will issue the Request for Proposal (RFP) on Monday to privatize the operations and future expansion of the greenfield deep-sea Ramayapatnam Port in Prakasam district, marking a significant milestone in the state’s ambitious port infrastructure expansion programme.
Developed by the Andhra Pradesh government under the Engineering, Procurement and Construction (EPC) model at an investment of ₹3,736 crore, the first phase of Ramayapatnam Port is expected to be completed by December 2026. The initial development comprises four berths with an annual cargo handling capacity of 34.04 million tonnes (MT).
According to Praveen Adhithya CV, Chief Executive Officer of the Andhra Pradesh Maritime Board, the successful private operator will be selected through a revenue-sharing model, with bids evaluated based on the percentage of gross revenue offered to the state.
“The first four berths are being completed by the state government by December. Operations of the first phase, subsequent capacity expansion, and conservancy of the port will be awarded to a single operator. The bidding criterion will be revenue share as a percentage of gross revenue,” Adhithya said.
Upfront Payment and Government Stake
The winning bidder will be required to make an upfront payment of ₹1,500 crore to the state government, payable in two equal installments of ₹750 crore—the first at the signing of the concession agreement and the second upon achieving the Commercial Operation Date (COD).
The Andhra Pradesh government will also retain a 12% equity stake in Ramayapatnam Port Development Corporation Ltd. (RPDCL), the special purpose vehicle implementing the project. The upfront payment is intended to help recover the state’s investment of over ₹4,000 crore in the port’s first phase.
Single Operator for Operations and Expansion
Unlike conventional berth concessions awarded individually, Ramayapatnam Port will be offered as a comprehensive concession, covering port operations, future capacity expansion, and marine services, including pilotage and conservancy.
Explaining the choice of the revenue-sharing model, Adhithya noted that the state had already invested substantial capital in developing the port.
“Since the government has invested the capital expenditure, multiple mechanisms were examined to recover that investment. Revenue sharing was found to be the most suitable approach. Royalty per tonne is generally adopted when individual berths are awarded, especially where the government continues to provide conservancy services. At Ramayapatnam, the concession includes the entire port ecosystem,” he explained.
The bidding strategy for the under-construction Machilipatnam and Mulapeta ports will be finalized closer to their completion.
Expansion to 138 MT Capacity
In its first phase, Ramayapatnam Port is designed to accommodate Panamax vessels of up to 80,000 DWT, supported by a draft of 15.5 metres.
The second phase will significantly expand the port’s capacity to 138.54 MT annually, with the development of 19 berths at an estimated cost of ₹6,904 crore. The upgraded infrastructure will feature a 20.2-metre draft, enabling the port to handle Capesize vessels.
Financing and Construction Progress
The EPC works are being executed by Navayuga Engineering Company Ltd., with a contract value of ₹2,634.65 crore.
To strengthen the project’s financial structure, Ramayapatnam Port Development Corporation recently secured a ₹3,938.10 crore loan from Sagarmala Finance Corporation Ltd. (SMFCL) with a tenure of 16 years and three months. The financing replaces an earlier loan from Power Finance Corporation Ltd. (PFC) and offers a lower interest rate of 8.60% per annum, compared to 10.40% (pre-COD) and 9.65% (post-COD) under the PFC facility.
The Andhra Pradesh government has extended a guarantee for the SMFCL loan and issued a comfort letter to address potential revenue shortfalls during the port’s initial years of operation.
Dredging Works Underway
To facilitate larger vessel access, Navayuga Engineering has awarded a ₹330 crore dredging contract to Belgium-based Dredging, Environmental and Marine Engineering NV (DEME). The scope includes deepening of the navigation channel, harbour basin, turning circle, and berth pockets, enhancing navigational access and operational efficiency.
Part of Andhra Pradesh’s Maritime Growth Strategy
Ramayapatnam Port is one of four new ports being developed by the Andhra Pradesh government as part of its strategy to expand the state’s total port handling capacity from approximately 110 MT to 400 MT annually.
Strategically located on the Bay of Bengal, the port is expected to emerge as a major gateway for eastern India, supporting industrial development, regional trade, and logistics connectivity. Andhra Pradesh has been a pioneer in private port development, with major facilities including Krishnapatnam, Gangavaram, Kakinada Deepwater Port, and the upcoming Kakinada Gateway Port contributing to its growing maritime ecosystem.
