Ports on India's east coast, which were lagging behind those on the west coast in terms of cargo movement, are now garnering a greater share of the business as the nation's trade with China and other East Asian economies surges.
Besides rising trade with China, the demand for coal to fuel power projects in eastern India has also led to growth in the east coast ports. With the increase in rail connectivity, a lot of the coal imported through western ports will be routed through eastern ports and moved by train to meet demand in the hinterland.
The ports on the east coast have become essential for the growth of shipping sector as well. Apart from coal imports, increasing oil exploration and production in the KG basin calls for more investments for the development of ports in the east coast.
Petroleum, Chemicals and Petro-chemicals Investment Region (PCPIR) is promoted by the Government of India, but is managed by the Andhra Pradesh state government in partnership with private players. A target to attract investments worth Rs 1 lakh crore
Demand for fuel from power plants and fertilizer units in the eastern region is growing and country faces severe shortage in local gas supplies. Petronet LNG is building India's first liquefied natural gas (LNG) terminal on the east coast at an estimated cost
Ports on east coast have realised the interesting commercial possibilities in the bunkering sector and making efforts to broaden their services by foraying into bunkering business. Both state-owned oil marketing companies and private companies are in the bunker supply business at ports like Chennai, Kakinada, Vizag..