APM Terminals To Invest Over $1 Billion In Three Indian Ports

08/25/2025

In a landmark development for India’s maritime infrastructure, APM Terminals, the port operating arm of Danish shipping giant Maersk, has finalized a $1.1 billion agreement with the Andhra Pradesh Maritime Board to develop and modernize three strategic ports along India’s eastern coastline. This investment represents a significant milestone in India’s ambitious plans to become one of the world’s top 10 maritime nations by 2030 and underscores the growing confidence of global shipping operators in India’s economic trajectory. The project, which is expected to generate approximately 10,000 direct jobs, will enhance India’s connectivity to global trade networks while positioning Andhra Pradesh as a pivotal logistics hub for the entire region.

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Strategic Importance of the Investment

 Geopolitical and Economic Context

The agreement, signed in the presence of Andhra Pradesh Chief Minister N. Chandrababu Naidu, comes at a crucial time when India is aggressively pursuing its Maritime Amritkaal Vision 2047—an ambitious plan to rank among the world’s top five maritime nations. This vision aligns perfectly with broader initiatives like Make in India, Sagarmala, and Gatishakti, all aimed at reducing logistics costs and improving infrastructure connectivity across the country. The investment demonstrates international confidence in India’s economic policies and growth potential, particularly in the maritime sector.

Andhra Pradesh’s Coastal Advantage

Andhra Pradesh possesses a formidable geographical advantage with its 1,053 km coastline—the second longest among Indian states. Chief Minister Naidu has articulated a visionary plan to establish a port or harbor every 50 km along this coastline to maximize its economic potential. The state government aims to transform Andhra Pradesh into the “eastern gateway” of India’s maritime trade, leveraging its strategic position along the Bay of Bengal and proximity to key Asian shipping routes. This development is expected to benefit not only Andhra Pradesh but also neighboring landlocked states and regions including Telangana, Chhattisgarh, parts of Maharashtra, Karnataka, and Odisha that depend on Andhra’s ports for their cargo movement.

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 The Three Ports: Comprehensive Development Plan

Current Development Status

Table: Development Status of Andhra Pradesh Ports (as of June 2025)

Ramayapatnam Port

Ramayapatnam Port is the most advanced of the three development projects, with Phase 1 work approximately 64% completed as reported in June 2025. This port is positioned to become a multi-cargo facility handling everything from containers to bulk commodities. Its strategic location offers connectivity to industrial hubs and agricultural centers in the region, making it ideal for both export and import operations. APM Terminals will deploy advanced cargo handling systems to ensure efficient operations and minimal turnaround times for vessels calling at the port.

Machilipatnam Port

With Phase 1 completion at approximately 40%, Machilipatnam Port holds significant historical importance as an ancient trading center. The redevelopment aims to transform it into a modern container terminal with capabilities to handle next-generation vessels. The port’s location near urban centers and tourist destinations adds to its economic viability, creating opportunities for cruise tourism infrastructure alongside commercial operations. The development is expected to boost regional economic activity and create numerous indirect employment opportunities beyond the direct jobs created by terminal operations.

 Mulapeta Port

Also approximately 40% complete in its Phase 1 development, Mulapeta Port is being developed as a deep-water port capable of handling larger vessels with greater draft requirements. This port will specialize in bulk cargo operations while potentially accommodating container services based on market demand. Its strategic position along the coastline offers natural protection from oceanic weather patterns, making it potentially more operable during monsoon seasons. The development will include modern navigation aids and docking systems to ensure year-round operational efficiency.

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Economic Impact and Job Creation

Direct Employment Opportunities

The APM Terminals investment is projected to create approximately 10,000 direct jobs across the three port facilities. These positions will span various operational areas including terminal management, cargo handling, equipment maintenance, logistics coordination, and administrative functions. The employment generation comes as a significant boost to the regional economy, providing skilled and semi-skilled employment opportunities for local communities.

Indirect Economic Benefits

Beyond direct employment, the port developments are expected to create numerous indirect economic opportunities:

• Supply chain industries: Warehousing, distribution centers, and logistics services
• Support services: Fuel stations, equipment repair facilities, and hospitality services
• Community development: Housing, education, and healthcare facilities to support growing workforce needs
• Local businesses: Restaurants, retail establishments, and transportation services

Chief Minister Naidu has emphasized the importance of developing a comprehensive economic ecosystem around the ports to maximize their developmental impact. This includes creating industrial clusters and manufacturing zones that can leverage the logistics advantages provided by modern port facilities.

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Technology and Sustainability Features

Advanced Cargo Handling Systems

APM Terminals will implement state-of-the-art technologies across all three ports to ensure operational efficiency and competitive service delivery. These include:

• Automated stacking cranes for container handling
• Digital twin technology for terminal optimization
• AI-powered predictive maintenance systems for equipment
• Integrated terminal operating systems for seamless coordination

These technological enhancements will enable faster vessel turnarounds, reduce cargo handling times, and minimize overall logistics costs for shippers and consignees. The company’s commitment to operational excellence is evidenced by their terminals appearing in six of the world’s top 10 most efficient container ports according to the World Bank’s Container Port Performance Index.

Environmental Sustainability Commitments

APM Terminals brings with it a strong sustainability ethos and ambitious environmental targets:

• 70% reduction in absolute emissions by 2030 (from 2020 baseline)
• Net zero emissions by 2040 across all operations
• Electrification of container handling equipment to eliminate operational emissions
• Carbon Intensity Indicator (CII) improvement programs for calling vessels

The company’s leadership in environmental performance is demonstrated through its pioneering role in the Zero Emissions Port Alliance (ZEPA), now comprising 12 member organizations committed to decarbonizing port operations. These sustainability initiatives align with India’s broader environmental goals while ensuring that the port developments adhere to international best practices in ecological conservation.

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Broader Strategic Context: Maersk’s $5 Billion India Investment Plan

Comprehensive National Strategy

The $1.1 billion investment in Andhra Pradesh’s ports represents just one component of Maersk’s broader $5 billion investment pipeline in India’s maritime infrastructure. This comprehensive strategy encompasses:

• Port and terminal development across multiple states
• Landside infrastructure including logistics parks and warehouses
• Technology investments in digitalization and automation
• Global capability centers to leverage Indian talent

This expansive vision was recently discussed in meetings between APM Terminals CEO Keith Svendsen, Maersk Chair Robert Mærsk Uggla, and Indian Prime Minister Narendra Modi. These high-level engagements underscore the strategic importance that Maersk places on the Indian market and its alignment with national development priorities.

Existing Indian Operations

APM Terminals has maintained a presence in India since 2004 and currently operates two significant assets:

1. Gujarat Pipavav Port: India’s first public-private port operation with a capacity of 1.35 million TEU annually, located 152 nautical miles from Mumbai.

2. APM Terminals Mumbai (Gateway Terminals India): The largest container facility in India with capacity expanding beyond 2 million TEU annually.

These established operations provide a strong foundation for the new developments in Andhra Pradesh and demonstrate APM Terminals’ long-term commitment to the Indian market. The company currently employs approximately 20,000 people across India in various roles including seafarers, terminal operators, and technology experts.

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Competitive Landscape: Global Players in Indian Maritime Development

MSC’s Investment Interests

Maersk is not alone in recognizing India’s maritime potential. Mediterranean Shipping Company (MSC), the world’s largest container shipping company, is also exploring significant investments across multiple sectors:

• Container terminal development in multiple locations
• Shipbuilding and repair facilities
• Container manufacturing units
• Vessel partnership programs

This parallel interest from another global giant validates India’s emergence as a strategic maritime hub and creates healthy competition that may ultimately benefit the efficiency and cost-effectiveness of Indian port services.

Complementary Investments

The maritime infrastructure ecosystem extends beyond terminal operations alone. Earlier in 2025, Maersk signed a memorandum of understanding with Cochin Shipyard to explore opportunities in ship repair and shipbuilding. The first Maersk vessel is expected to undergo repairs there in 2025, marking the beginning of what could become a significant ship maintenance hub serving both domestic and international shipping lines.

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Future Outlook and Implications

Regional Connectivity Enhancement

The Andhra Pradesh government has directed APM Terminals to prepare a comprehensive logistics plan that integrates the newly developed ports with multiple transportation modes:

• Road networks connecting to national highways
• Rail links to main freight corridors
• Inland waterways for cost-effective domestic distribution
• Air connectivity for time-sensitive cargo

This multi-modal approach aims to reduce overall transport costs while improving connectivity to hinterland markets. The vision extends beyond port infrastructure to create an integrated logistics ecosystem that seamlessly connects maritime transport with land-based distribution networks.

Long-Term Economic Transformation

The APM Terminals investment represents a catalytic development for Andhra Pradesh and indeed for India’s entire eastern coastline. By creating world-class port infrastructure, the project will:

• Reduce logistics costs for businesses in the region
• Improve export competitiveness of Indian manufacturers
• Attract further investments in port-related industries
• Enhance India’s connectivity to global supply chains

As Keith Svendsen, CEO of APM Terminals, noted following his recent visit to India: “India is now a powerhouse for global trade and how much opportunity we can unlock if we jointly invest in logistics and infrastructure to meet the needs of the future growth.” This sentiment captures the transformative potential of the current investment in shaping India’s economic trajectory in the decades ahead.

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Conclusion

APM Terminals’ $1.1 billion investment in developing Ramayapatnam, Machilipatnam, and Mulapeta ports represents a watershed moment for India’s maritime infrastructure development. Beyond the immediate economic benefits of job creation and improved trade infrastructure, the project signals India’s evolving status as a premier maritime nation capable of attracting significant international investment in critical infrastructure.

The development aligns perfectly with India’s national development priorities while positioning Andhra Pradesh as a strategic logistics hub along India’s eastern coastline. As global trade patterns continue to evolve, investments of this scale and sophistication will play a crucial role in determining India’s competitive position in the international economy.

With construction already well underway at all three port locations, the maritime industry will be watching closely as APM Terminals brings its global expertise to bear on developing what promises to become a showcase infrastructure project demonstrating the potential of public-private partnerships in transforming India’s logistics landscape.