APM Terminals, a Maersk company, has signed a Memorandum of Understanding (MoU) with the Andhra Pradesh Maritime Board to invest INR 90 billion (approximately USD 1 billion) in developing three major ports in the state.

The agreement covers upgrades and infrastructure development at the ports of Ramayapatnam, Machilipatnam, and Mulapeta. Under the MoU, APM Terminals will introduce modern cargo-handling systems, develop new terminals, and oversee operations.

The project is expected to create around 10,000 direct jobs and position Andhra Pradesh as India’s “eastern gateway” and a regional logistics hub.

As part of the plan, APM Terminals will design a comprehensive logistics strategy to connect the ports with highways, railways, inland waterways, and air networks, aiming to cut transport costs and enhance connectivity. The state also plans to establish a port or terminal every 50 kilometers along its 1,053-kilometer coastline to strengthen trade flows.

This MoU highlights Andhra Pradesh’s ambition to leverage its long coastline and Maersk’s growing interest in India. APM Terminals CEO Keith Svendsen previously stated that the group expects to invest around USD 5 billion in ports, terminals, and related infrastructure in India as part of its long-term partnership.

Earlier this year, Maersk signed a separate MoU with Cochin Shipyard to explore opportunities in ship repair and shipbuilding, with its first vessel expected to undergo repairs there in 2025. This aligns with India’s vision of becoming one of the world’s top 10 maritime powers by 2030 and among the top 5 by 2047.

India has also attracted other global operators. Mediterranean Shipping Company (MSC), the world’s largest container shipping line, has identified opportunities across the country—from container terminals, shipbuilding, and maintenance to container manufacturing and vessel partnerships—backed by policy reforms aimed at boosting competitiveness.