AP unveils logistics-led growth strategy with AP-LInC reform

Vijayawada: The state government has approved a new body called the Andhra Pradesh Logistics Infrastructure Corporation (AP-LInC) to improve transport, trade and industrial growth in the state.

Approved by the Cabinet on January 8, AP-LInC will act as a single authority to manage and coordinate ports, highways, inland waterways, airports and cold storage systems. Until now, these sectors worked separately. The new system is meant to improve planning, reduce delays and speed up project execution.

Andhra Pradesh has a 975-km-long coastline and more than 15 working seaports, including Visakhapatnam port. The state already ranks second in India in sea cargo movement. The government now wants to use this advantage to build a strong and well-connected logistics network to support industries, exports and investments.

Under the plan, Rs 18,485 crore will be spent on improving road links to ports and harbours. Another Rs 4,500 crore has been set aside for upgrading state highways and roads and buildings networks. AP-LInC will handle planning, funding and implementation to avoid duplication of work. Several industries such as pharmaceuticals, food processing, textiles and manufacturing have faced problems due to poor logistics. The new approach aims to reduce transport costs, save time and improve export efficiency.

Twenty-three important road projects covering 432 km are planned near nine ports, including Visakhapatnam, Kakinada and Krishnapatnam.

In addition, nearly 15,000 km of State and district roads will be upgraded. Work on 1,250 km has already been tendered and is expected to be completed by 2026.

The government also plans to set up district-level logistics cells, a Logistics University and a civil aviation university to develop skilled manpower.

Chief Minister N Chandrababu Naidu wants to make Andhra Pradesh the ‘Gateway of the East Coast’, with a port or fishing harbour every 50 km. The logistics sector currently contributes about 1 per cent to the State’s economy, and the government aims to increase this to 3 per cent.

The state has investment proposals worth over Rs 1.5 lakh crore in sectors like ports, airports, shipbuilding and manufacturing. Officials say AP-LInC will help attract more investors by creating a well-connected and efficient logistics system.