APM Terminals to invest $1B in India’s Andhra Pradesh ports, terminals

August 25, 2025, by Naida Hakirevic Prevljak

The Netherlands-based terminal operator APM Terminals, part of A.P. Moller – Maersk, has signed a memorandum of understanding (MoU) with India’s Government of Andhra Pradesh, through the Andhra Pradesh Maritime Board (APMB), to accelerate port and terminal development in the state.

As informed, APM Terminals has expressed its intent, as part of the MoU, to invest $1 billion (₹8-9 billion) to support Andhra Pradesh in developing modernized ports and terminals.

The signing is said to mark “a major milestone” in strengthening maritime infrastructure and building a globally competitive logistics ecosystem.

With this MoU, Andhra Pradesh is set to redefine its role as the Eastern gateway for maritime commerce and logistics in India by aligning global expertise with local strengths.

Nara Chandrababu Naidu, Chief Minister of Andhra Pradesh, has outlined his vision of positioning Andhra Pradesh as “the logistics hub of the East”. As part of this vision, the Chief Minister has committed to developing marine infrastructure such as ports, fishing harbours and fish landing centers at every 50 km of the state’s 1,053 km of coastline to create a dense maritime network that can support international trade and empower coastal communities.

Currently, the state has five operational non-major ports and four green field ports, which will be operational by 2026.

APM Terminals has been present in India since 2004 and operates two key assets: Gujarat Pipavav Port Limited, located in the Amreli District of Gujarat, and Gateway Terminals India, located in the JNPT Port in Maharashtra. The company has been introducing advanced cargo handling technologies, promoting sustainable operations and enhancing efficiency in container and bulk handling, driving growth in India’s maritime sector.

The abovementioned investment is expected to generate 8,000 to 10,000 direct and indirect jobs, while also catalyzing allied industrial and logistics activity across the state.

Specifically, the core focus of the MoU will be on the establishment of state-of-the-art terminals and the development and modernization of ports to international standards. APMT will leverage its global expertise and has expressed its intent to advise on identifying port development mechanisms, designing optimal project structures, and adopting advanced practices for equipping world-class port infrastructure.

The scope will extend to fostering sustainable and green port operations by deploying low-emission technologies, energy-efficient cargo handling systems, and ESG-compliant practices, ensuring that Andhra Pradesh benefits fully from international best practices and long-term technical support.

The impact of this MoU is expected to be transformative, reflecting the inclusive approach, balancing industrial expansion with socio-economic development.

To ensure effective follow-through, a joint working committee with APM Terminals and APMB will be formed by Q3 2025.

In other news, India and the Netherlands recently laid the groundwork for setting up a green and digital maritime corridor between the Port of Rotterdam and Indian ports, deepening ties in port digitalization, green shipping, and logistics optimization.

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