Machilipatnam Port Revival

Historical Context:

• Machilipatnam, also known as Masulipatnam or Bandar or Masuala, is an ancient port city at the mouth of the River Krishna on the Bay of Bengal.

• 1st century AD: Active maritime centre under early Satavahana trade networks.

• Became a prominent trade and cultural hub through the 16th to 18th centuries, especially under the Qutb Shahi dynasty.

• Attracted global maritime trade from the Middle East, Southeast Asia, and Europe.

• European Powers in the 17th century:

  • The Dutch East India Company established one of its earliest factories here.

  • Followed by the British, French, and other traders who recognized its strategic and economic importance.

• Decline:

  • Lost prominence to Madras (Chennai) due to changing British colonial trade policies and siltation issues.

Current Developments:

• A modern Greenfield Port is under rapid construction at Manginapudi, near Machilipatnam.

Construction Progress:

• 48% of civil work completed (as of mid-2025).

• Over 1,250 workers engaged in round-the-clock, two-shift operations.

Institutional Framework:

• Initially awarded in 2007 to Maytas Infra (linked to Satyam Group); stalled due to corporate scandal.

• In 2020, a Special Purpose Vehicle (SPV) — Machilipatnam Port Development Corporation Ltd. — was created to revive the project.

• Developed under the Landlord Model (state owns land; private party develops and operates terminals).

• EPC contract (Engineering, Procurement, and Construction) awarded to Megha Engineering and Infrastructure Ltd. (MEIL).

Expected Impact:

• Operations targeted to commence by end of 2026.

• Will serve as a key node in Andhra Pradesh’s maritime trade corridor.

• Expected to:

  • Revive regional economy through job creation, transport, and logistics support.

  • Enhance logistics efficiency for hinterland trade (especially Krishna, Guntur, and NTR districts).

  • Boost exports and coastal shipping.

  • Strengthen Andhra Pradesh’s role as a coastal trade hub, alongside ports like Krishnapatnam, Kakinada, and Ramayapatnam.

Strategic Significance for Andhra Pradesh:

• Machilipatnam’s port revival aligns with India’s Sagarmala vision.

• Will improve port-led development, blue economy, and promote Make in India and logistics competitiveness.

• Important for decongesting Visakhapatnam Port and offering alternatives along the east coast.