CONTROVERSIAL PLANS AT MACHILIPATNAM
While plans by the state government of Andhra Pradesh in India to build a deepwater port at the town of Machilipatnam have been generally welcomed, the proposed location of the port has drawn controversy.The chosen site requires less dredging than at Gilakaladindi, which is where cargo in the area has been traditionally handled, but would impose on the historic residential area.
The facility was previously managed by PSA Corporation, which pulled out of its concession agreement in 2003 as insurance underwriters hiked rates because of the perceived increased security threat. However, OPM grew box traffic last year by 26% to 350,000 teu; in 2003, just 117,488 teu passed through Aden.