Andhra Pradesh has unveiled an ambitious and comprehensive roadmap to position itself as a national logistics hub, targeting the lowest logistics costs in India while aligning with global standards. The strategy, presented at the Ministers and Secretaries Conference on February 9, outlines massive investments across highways, railways, ports and airports, backed by technology-driven reforms and dedicated budgetary support.
The State plans to develop 3,358 km of national highways over the next three years at an estimated cost of Rs 76,000 crore. In addition, 12 State highways spanning 709 km will be upgraded to strengthen east–west connectivity and improve linkages between industrial corridors such as the Visakhapatnam-Chennai Industrial Corridor (VCIC), Hyderabad-Bengaluru Industrial Corridor (HBIC), and Chennai-Bengaluru Industrial Corridor (CBIC) and key export gateways.
On the railway front, the government aims to eliminate all level crossings by constructing 774 road overbridges and underbridges at a projected cost of Rs 14,500 crore. Of these, 372 have already been sanctioned. Major railway projects worth over Rs 3 lakh crore — including new lines and high-speed rail proposals — are scheduled for commissioning between 2026 and 2029.
Air infrastructure is also being scaled up. The Bhogapuram International Airport is 96.8% complete and is expected to be operational by June 2026. Plans are underway for nine new greenfield airports, including Amaravati, Srikakulam, Nagarjuna Sagar and Kuppam.
Tenders have been floated for Dagadarthi Airport, while feasibility studies for water aerodromes at nine tourism destinations have been completed, signalling a push toward diversified air connectivity.
Port-led development remains central to the logistics vision. The Ramayapatnam Port (75%), Mulapeta Port (65%), Machilipatnam Port (50%), and Kakinada SEZ Port (32%) are progressing under various stages of execution.
Fishing infrastructure is being modernised with Phase-I harbours worth Rs 1,523 crore nearing completion. Phase-II harbour works are being retendered under EPC mode with support from Sagarmala Programme 2.0.
Technology integration forms a cornerstone of the strategy. The State is developing a unified logistics intelligence dashboard and a bilingual mobile application to enable real-time cargo tracking, truck booking and predictive analytics.
Commodity-specific studies on banana, mango, tomato and sweet lime have identified gaps in cold storage and processing. Recommendations include establishing packhouses, implementing digital traceability systems and improving quality standards to boost exports.
Finance Minister Payyavula Keshav has allocated Rs 1,283 crore to the Infrastructure & Investments Department for 2026-27, reinforcing the State’s commitment to integrated infrastructure, digital systems and sustainable practices.
With coordinated investments across multimodal transport networks and a strong push toward digitalisation, Andhra Pradesh is positioning itself to emerge as India’s most competitive and cost-efficient logistics hub in the coming years.
