AP Cabinet Approves New Captive Port by ArcelorMittal Nippon Steel at DL Puram
In a significant development for the steel and infrastructure sectors, the Andhra Pradesh Cabinet has approved a proposal for the establishment of a captive port at DL Puram, located in the Anakapalli District. This move paves the way for ArcelorMittal Nippon Steel India to develop a state-of-the-art port facility designed to enhance its steel manufacturing operations. The new port will have a waterfront spanning 2.9 kilometers, providing AM/NS with a strategic infrastructure advantage to streamline its supply chain and logistics.
Key Details of the Captive Port Project
1. Approval and Infrastructure:
On April 3, 2025, the Andhra Pradesh Cabinet, under the leadership of Chief Minister N Chandrababu Naidu, granted approval for the construction of the captive port. The facility will be situated at DL Puram in Anakapalli District, a prime location for enhancing industrial connectivity. The port will feature a 2.9 km waterfront, making it suitable for handling large volumes of goods, particularly the raw materials and finished products critical to AM/NS’s steel production operations.
2. Strategic Importance for ArcelorMittal Nippon Steel:
ArcelorMittal Nippon Steel India Ltd is one of the country’s leading steel manufacturers. The establishment of this captive port will significantly enhance its logistical capabilities, reducing reliance on external ports and enabling faster and more cost-effective transportation of materials. This move will also help AM/NS optimize its supply chain, improve efficiency, and ultimately strengthen its position in the highly competitive steel industry.
3. Amendment to the KGPL Port Concession Agreement:
The proposal for the new captive port will be facilitated by an amendment to the KGPL Port Concession Agreement. This amendment addresses the restriction on the commissioning of competing ports, allowing AM/NS to set up its port without violating the terms that prevent competing facilities from being developed in the region. This strategic shift in the agreement opens the door for AM/NSL to enhance its infrastructure with minimal regulatory hurdles.
4. Economic and Industrial Impact:
The development of this new port is expected to have significant economic benefits for the region. It will generate employment opportunities, both during construction and in ongoing operations, while also stimulating local businesses that support the port and steel manufacturing activities. Additionally, the project aligns with the government’s goal of fostering industrial growth in Andhra Pradesh and attracting investment in the state’s infrastructure.
5. Port Capabilities and Functionality:
The DL Puram port will be designed to handle the specific needs of AM/NS’s steel production. This includes the ability to transport raw materials like iron ore and coal, as well as the export of finished steel products. The facility will be equipped with advanced technology to ensure efficient loading and unloading, as well as enhanced storage and handling capacities. The direct access to the coast will reduce transportation time and costs, improving the overall efficiency of the steel production process.
6. Environmental Considerations and Sustainability:
As with all major infrastructure projects, the environmental impact will be a crucial factor. The establishment of the port is expected to follow stringent environmental guidelines to minimize ecological disruptions. AM/ is likely to incorporate sustainable practices in its port design and operation, aligning with its broader commitment to reducing carbon emissions and improving energy efficiency in its production processes.
7. Government and Industry Cooperation:
The approval of this project underscores the close cooperation between the Andhra Pradesh state government and ArcelorMittal Nippon Steel India. The amendment to the KGPL Port Concession Agreement is an example of how public-private partnerships can facilitate infrastructure development, providing benefits for both the industry and the local economy.
Key Takeaways:
• Andhra Pradesh Cabinet has approved the establishment of a new captive port at DL Puram in Anakapalli District.
• The port will feature a 2.9 km waterfront, providing strategic access to the sea for ArcelorMittal Nippon Steel India.
• The project is facilitated by an amendment to the KGPL Port Concession Agreement, lifting restrictions on competing ports.
• The new port will improve logistics for AM/NS’s steel production, reducing transportation costs and increasing efficiency.
• The port will handle raw materials such as iron ore and coal, as well as finished steel products for export.
• The project is expected to generate employment and support the local economy, boosting industrial growth in Andhra Pradesh.
• The development aligns with AM/NS’s goals to strengthen its supply chain and improve operational capabilities.
• The port will adhere to environmental guidelines to minimize ecological impact while promoting sustainability.
