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Situated in the southern part of East Coast of India, it is an all weather Lighterage Port developed in a naturally sheltered bay called Godavari Sand Spit that offers excellent protection to the port from the vagaries of nature. It is today one of the most important minor ports in India.

It has a chequered history that dates back to year 1805, when the port of Coringa nearby had to be closed due to unavoidable circumstances. It has acquired strategic importance and is classified as an intermediate port and is all weather sheltered anchorage port. Its infrastructure was earlier found to inadequate for handling export/import industrial cargoes of companies like GFCL, POL, Hindustan Petroleum Ltd., etc. To rectify this problem and meet the growing requirements of modernisation, the Deep Water Port facility was created with 150 crore ADB financial assistance in 1996.