Gangavaram, located in Visakhapatnam district, is situated 12 km south of Visakhapatnam Port (VPT) and adjacent to Visakhapatnam Steel Plant (VSP), making it a strategic point for a minor port that will facilitate the industrial needs of Visakhapatnam as well as the Parawada Industrial Development Area
The port will be an economic growth centre, catalysing the proposed Special Economic Zone being established in the Visakhapatanam-Kakinada belt. Through private sector participation from leading port operators and developers, it is envisaged that this port will be able to develop into a multi-purpose cargo handling port, with high level of value addition in its services and throughput and quality of service, benchmarked against international port standards.
The Andhra Pradesh Industrial Infrastructure Corporation (APIIC) has entered into a Project Development and Promotion Partnership (PDPP) with IL&FS Infrastructure Development Corporation (IIDC) to develop the project. The PDPP has procured consultants with experience in development of engineering master plans for ports as well as privatisation experience of ports
A private sector developer / operator has been identified through an international competitive bidding process in August 2002 and the project was awarded to a consortium of DVS Raju and Dubai Ports in 2003. The Concession Agreement and the Shareholders Agreement was signed between Government of Andhra Pradesh and the private developer in August 2003