Minister Confirms Federal Review for New Sri City Dry Port Designation
The Union Government is evaluating a proposal to establish a dry port at Sri City in Andhra Pradesh to bolster regional export capacity. This initiative aligns with federal strategies to optimize logistics infrastructure and reduce freight costs across the Telugu states.
Federal Oversight and Regional Logistics Expansion
Union Minister for Ports, Shipping and Waterways, Sarbananda Sonowal, confirmed in the Lok Sabha on July 23 that the government is analyzing a proposal to designate Sri City, located in Tirupati district, as a dry port. This evaluation falls under the jurisdiction of the Inter-Ministerial Committee on Customs. The announcement came in response to inquiries from Vijayawada MP Kesineni Sivanath regarding the development of Inland Container Depots and Container Freight Stations within Andhra Pradesh.
Strategic Criteria for Infrastructure Approvals
The Ministry has identified Andhra Pradesh as a 'blue zone' state. This classification prioritizes the construction of new dry ports in regions characterized by substantial industrial demand but insufficient logistical support. To ensure these projects remain economically sustainable, the government adheres to specific geographical mandates:
- New greenfield projects are prohibited within 100 kilometers of existing facilities.
- Rail-linked Inland Container Depots receive priority only when the transit distance to the nearest seaport exceeds 200 kilometers.
Project Pipeline in the Telugu States
The Inter-Ministerial panel has already greenlit eight new dry ports geographically, including a site at Fatehpur in Telangana. Currently, nine additional proposals are undergoing active review. Alongside the bid for Sri City in Andhra Pradesh, officials are weighing a proposal for Chityala in Telangana. Minister Sonowal emphasized that integrating these regions into an international-standard logistics network is essential for lowering heavy freight transport expenses and driving growth in the local trade sectors.
Source: The Hindu — Home
