Andhra Pradesh Plans ₹1,700 Crore Waterway Corridor Linking Muktyala with Machilipatnam Port

Andhra Pradesh Moves to Develop 168-km Inland Waterway for Industrial Freight

Andhra Pradesh is looking to expand its inland waterway network to transport industrial cargo, with the state government inviting tenders for a proposed 168-km navigation corridor connecting Muktyala with Machilipatnam Port. The project carries an estimated initial cost of ₹1,700 crore and is intended to offer industries an alternative to road-based freight movement.

The corridor is expected to improve connectivity between industrial clusters in the Jaggayyapeta region and the port, particularly for the movement of bulk materials. Cement, limestone and fly ash are among the commodities that could be transported through the proposed route.

The tendering process has begun following in-principle approval from the Inland Waterways Authority of India (IWAI). The bidding process is expected to be completed by December 2026. The project is planned under the Design, Build, Finance, Operate and Transfer (DBFOT) model through a public-private partnership.

Two Waterway Stretches to Connect Industrial Hubs with the Port

The proposed corridor will comprise two stretches. An 82-km section will run along the Krishna River between Muktyala and Prakasam Barrage, while another 86-km section will follow the Bandar Canal towards Machilipatnam Port.

Infrastructure and Roads and Buildings Minister BC Janardhan Reddy said the project would help reduce logistics costs, strengthen links between industrial centres and ports, and support industrial growth in the state.

The initiative forms part of efforts to develop National Waterway-4, which includes sections of the Krishna and Godavari rivers and their associated canal networks. IWAI has already undertaken navigational development works along the Vijayawada-Muktyala stretch and developed a roll-on/roll-off terminal at Muktyala.

Navigation Infrastructure Remains a Key Challenge

Despite the potential benefits, the corridor’s performance will depend on reliable navigability throughout the year. Maintaining adequate water depth, managing seasonal changes in river flows and addressing infrastructure constraints will be essential.

Low-level bridges and ageing locks could also affect vessel movement and operational efficiency. Suitable cargo-handling facilities and dependable connections between factories, waterways and the port will be important for making the route commercially viable.

If implemented effectively, the corridor could reduce heavy truck movement on highways, limit road wear and improve freight efficiency. Its long-term impact will depend on timely execution, private-sector participation and the development of an integrated logistics network connecting industrial units with Machilipatnam Port.