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Andhra Pradesh has invited bids for a proposed ₹1,700-crore inland waterway corridor connecting Muktyala with the upcoming Machilipatnam Port to strengthen industrial freight movement and port connectivity. The project aims to establish an alternative cargo transportation route for industries in the state, reduce dependence on road freight and improve the movement of bulk commodities.
The Andhra Pradesh Inland Waterways Authority (APIWA) has initiated the tendering process for the development of the corridor under the Design, Build, Finance, Operate and Transfer (DBFOT) model through a public-private partnership (PPP). The proposed 168-km route will combine an 82-km stretch along the Krishna River between Muktyala and Prakasam Barrage with the Bandar Canal section leading towards Machilipatnam Port. The initiative has received in-principal approval from the Inland Waterways Authority of India (IWAI).
The project envisages upgrading the existing waterway infrastructure to accommodate cargo vessels and facilitate the movement of industrial materials, including cement, limestone and fly ash, from manufacturing clusters around Jaggayyapeta. By linking inland industrial centres with port infrastructure, the corridor is expected to improve freight efficiency and offer businesses an additional mode of transport.
The Bandar Canal stretch between Prakasam Barrage in Vijayawada and Machilipatnam Port will be developed to specified navigation standards. Plans include maintaining a minimum channel depth of 1.5 metres and a bottom width of 20 metres. A navigation lock measuring 70 metres in length and 15 metres in width will be constructed at Prakasam Barrage to facilitate vessel movement.
The development will also involve replacing low-level bridges that obstruct navigation with high-level structures, relocating utility lines and establishing cargo and passenger terminals. Cargo-handling infrastructure, including cranes and conveyors, will support loading and unloading operations.
The selected developer will execute the project through a concession arrangement spanning 50 years, structured as an initial 30-year term with two possible 10-year extensions. Construction is expected to be completed within 36 months of the award. APIWA will facilitate statutory clearances and provide support for land acquisition.
According to the tender conditions, prospective bidders must meet specified financial and infrastructure-experience requirements. Online bids are due by November 30, 2026, while technical bids are scheduled to be opened on December 7.
For Andhra Pradesh, the project represents an opportunity to diversify its freight network by integrating inland waterways with industrial production centres and maritime gateways. If implemented effectively, the corridor could help ease road congestion, improve bulk-cargo logistics and strengthen Machilipatnam Port’s role in the state’s expanding trade infrastructure.
𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
Pacific International Lines (PIL) has placed an order for seven 1,400-TEU container vessels with China’s Huanghai Shipbuilding, as part of its ongoing fleet renewal and expansion programme. The new vessels are expected to strengthen PIL’s network capabilities and operational efficiency, particularly across its Intra-Asia and Pacific Islands services. Designed to serve the requirements of these regional markets, the ships will measure 172 metres in length and 25 metres in width, with dimensions customised to maximise vessel size while retaining the flexibility to connect smaller ports with key transhipment hubs across PIL’s network. The methanol-ready vessels will also support the company’s decarbonisation strategy, enabling the potential adoption of lower-emission fuels as availability and supporting infrastructure develop. “Investing in these new feeder vessels will strengthen our capabilities and capacity across the Intra-Asia and Pacific Islands network. These ships, equipped with energy-saving technologies and designed to be methanol-ready, will further optimise our operations while supporting our goal of net zero emissions by 2050,” said Lars Kastrup, CEO of PIL. He added that the vessels will incorporate modern technological features and digital capabilities to support more efficient operations and performance monitoring, helping PIL provide customers with wider services and sustainable shipping solutions. The ships will feature energy-saving technologies, including pre-swirl vanes and propeller boss cap fins, designed to improve propulsion efficiency and reduce fuel consumption. Enhanced cargo safety systems will include fixed fire water monitors and cargo hold water spray systems to strengthen onboard firefighting capabilities. The vessels are scheduled for delivery between 2029 and 2030. PIL selected Huanghai Shipbuilding for its technical capabilities, experience and ability to meet the company’s requirements for quality, efficiency and delivery.
Maersk and Hapag-Lloyd are shifting their joint India-Europe container service back to the Suez Canal and Red Sea corridor, replacing the longer route around the Cape of Good Hope. Announced on November 2, 2026, the move is expected to reduce transit times for cargo moving between India and Europe, subject to regional security conditions. Operating under the Gemini Cooperation, the service is designated ME1 by Maersk and Indian Ocean Service (IOS) by Hapag-Lloyd. The revised routing marks another step in the carriers’ gradual return to the Suez corridor following disruptions that prompted vessels to divert around southern Africa. According to Maersk, the first westbound sailing on the revised route will be Atlanta Express, voyage 644W, departing Salalah, Oman, on November 4. The first eastbound sailing will be Savannah Express, voyage 644E, departing Tangier, Morocco, with Maersk listing November 13 as the scheduled date. The updated port rotation is Mundra–Nhava Sheva–Salalah–Suez Canal–Tangier–Rotterdam–Wilhelmshaven–Hamburg–London–Algeciras–Tangier–Suez Canal–Salalah–Mundra. The revised schedule retains Mundra and Nhava Sheva as the service’s Indian port calls, while maintaining connections to major European trade gateways, including Rotterdam, Hamburg, Wilhelmshaven, London and Algeciras. The route will use the Suez Canal in both directions, avoiding the extended voyage around the Cape of Good Hope. The return to the Suez route is expected to improve transit efficiency for Indian exporters and importers shipping goods to European markets. A shorter maritime route can support better shipment planning, inventory management and supply chain coordination, particularly for businesses dependent on predictable international container schedules. However, Maersk has not specified the number of days that will be saved or published revised port-to-port transit times. Shippers are advised to confirm updated schedules with their respective carriers before finalising shipment plans. The carriers have emphasised that the routing decision remains dependent on the security situation in the Red Sea and surrounding waters. Both companies will continue monitoring regional developments, with the safety of crews, vessels and cargo remaining their priority. However, the change applies specifically to the ME1/IOS service and does not mean that all Gemini Cooperation services have returned to the Suez Canal. The move underscores the importance of the Suez Canal as a strategic maritime corridor connecting Asia and Europe. If security conditions remain stable, the revised routing could help improve transit efficiency and strengthen connectivity across the India-Europe container trade. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
The Union Cabinet has approved the ₹10,000 crore Container Manufacturing Promotion Scheme (CMPS), aimed at establishing a globally competitive container manufacturing ecosystem in India, reducing import dependence and strengthening maritime and logistics supply chains. Announced in the Union Budget 2026–27, the scheme will run from FY 2027–28 to FY 2039–40. The initiative seeks to increase India's annual domestic container manufacturing capacity nearly tenfold, from approximately 70,000 twenty-foot equivalent units (TEUs) to 7.5 lakh TEUs. It will support both the establishment of new manufacturing facilities and the expansion of existing units, creating a stronger domestic base for shipping containers used in international trade. The scheme has four key components covering production costs, capital investment, testing infrastructure and land leasing support. The largest allocation, ₹8,891 crore, is earmarked for Operational Expenditure Assistance (OEA), which will provide financial support for eligible containers manufactured to global shipping standards and sold by approved manufacturers. The assistance is intended to bridge the cost gap between domestically produced containers and competing imports. Interest Subvention Assistance has been allocated ₹859 crore to provide a 3% annual interest subsidy on eligible term loans taken for setting up greenfield manufacturing facilities or expanding existing capacity. The scheme also provides ₹150 crore for testing and certification infrastructure, including specialised facilities for dynamic longitudinal impact testing. A further ₹100 crore has been earmarked for management, monitoring and capacity-building activities. Land-leasing support at major ports is another component. The scheme is expected to create around 3,000 direct jobs and more than 50,000 indirect employment opportunities. It could also stimulate demand across ancillary industries, including specialised steel, corner castings, wooden flooring and paints, supporting the development of a broader domestic manufacturing ecosystem. For India's logistics and export sectors, expanding local container production could diversify equipment sourcing and improve supply-chain resilience amid global shipping disruptions. A stronger domestic industry could also position India as a potential export hub for quality shipping containers. However, the long-term impact will depend on manufacturers' ability to meet international quality standards, achieve competitive production costs and secure sustained demand from shipping lines and other container users. Successful implementation could strengthen India's position in global maritime trade while supporting the government's broader Make in India ambitions. 𝐒𝐭𝐚𝐲 𝐓𝐮𝐧𝐞𝐝 𝐭𝐨 CARGOCONNECT 𝐟𝐨𝐫 𝐥𝐚𝐭𝐞𝐬𝐭 𝐮𝐩𝐝𝐚𝐭𝐞𝐬!
