Krishnapatnam Port to shift container terminal operations

NELLORE : All container terminal operations at Adani Group-owned Krishnapatnam Port are likely to be shifted to Tamil Nadu by the end of January.

According to sources, Krishnapatnam Port management has already obtained all requisite approvals from the Union government to shift container terminal operations. The container vessel that will reach Krishnapatnam Port on January 24 will be the last, after which all container terminal operations will be shifted to Kattupalli and Ennore ports in Tamil Nadu, the sources added.

After it became operational, Krishnapatnam port emerged as a major handler of container operations after Mumbai, Chennai, and Visakhapatnam.

The container terminal handled about 6 lakh containers per year between 2014 and 2019.
However, the operations at Krishnapatnam reduced to 4 lakh containers per year between 2019 and 2021, and further reduced to 1.5 lakh during 2021-23. Without a container terminal, major operations at Krishnapatnam port would be limited to handling of dirt cargo like coal, iron ore, and ash.

Expressing concerns over the decision of Adani Ports to shift container terminal operations from Krishnapatnam, TDP politburo member Somireddy Chandramohan Reddy said it will result in huge loss to the state exchequer and also job losses in the region.

“More than 10,000 people are getting employment directly or indirectly in the container cargo terminal. The state government is getting taxes of about 1,000 crore per year. More importantly, farmers sacrificed their lands for the development of the port after which the state government facilitated the land acquisition. A special economic zone (SEZ) has been established with port-led business. All industries in the SEZ will also incur huge losses due to increased operational expenses,” Somireddy lamented.

He also lashed out at the state government for not raising the issue with the Union government.

“This is not just an issue of Adani or Krishnapatnam port, it involves the livelihoods of thousands of people, and it will have a cascading effect on port-based industries established around the port. TDP will hold agitations and will organise people to protest the shifting of the container terminal,” Somireddy said.