CM: AP will become East Coast logistics hub

Visakhapatnam: Chief Minister N Chandrababu Naidu on Tuesday said Andhra Pradesh would be developed as the logistics hub on the East Coast of India. Speaking at the East Coast and Logistics Summit organised jointly by the Global Forum for Sustainable Transformation and Maritime Gateway Summit here, he advised the experts of port-led shipping industries to form an advisory body with 15 to 20 members to offer suggestions to the state government to develop AP as logistics hub of the East Coast.

Naidu said a logistics corporation will be formed with the involvement of all stakeholders to develop the sector comprehensively. "There is no fund crunch as the infrastructure is being developed under the PPP mode," he informed. The Chief Minister mentioned that the logistics sector would play a key role in increasing the country's economy and nation-building. The contribution of the logistics sector to the gross state domestic product (GSDP) stood at one per cent at present and Naidu stressed the need for increasing it to 3 per cent.

He also informed the gathering that the state government was determined to develop ports and fishing harbours at every 50-km stretch along the 1,050-km-long coastline in AP.

Further, the Chief Minister stated that the state government was planning to develop ship building, ship and container repairing and ship recycling units in Dugarajapatnam, Machilipatnam and other ports. These facilities will also provide maintenance services for defence vessels, he added.

He stressed the need for creating a digital logistics platform and cargo tracking facilities besides developing rail, road and air connectivity to all major ports.

Further, the Chief Minister opined that ports should be well-connected with industrial units to reduce logistics costs. He underlined the need for reducing logistics cost which stood at 13 per cent in India, against eight per cent in other countries.

Naidu informed that the state government was also planning to develop inland water transport to reduce logistics costs. Citing the example of Buckingham Canal used for transport between Kakinada and Chennai, the CM stressed the need for reviving inland waterways. Ministers BC Janardhana Reddy, Dola Sree Bala Veeranjaneya Swamy and Kondapalli Srinivas, GFST vice chairman and director SP Tucker and other officials were present.