Although the South Coast Railway (SCoR) Zone was officially announced in 2019, progress had been slow until now. During previous visits to Andhra Pradesh, railway minister Ashwini Vaishnaw had stated that the delay in starting the works was due to the previous YSRCP government's failure to provide the necessary land for the zone. Visakhapatnam, which is part of the Waltair division, will serve as the headquarters for the SCoR.

For several decades, there has been a consistent demand for the establishment of a new railway zone with its headquarters in Visakhapatnam. This demand stems from the commitment made in the Andhra Pradesh Reorganisation Act of 2014, where the Union Government had promised to create a new railway zone for the state. The proposed zone would include the divisions of Vijayawada, Guntur, and Guntakal, along with part of the Waltair division of the East Coast Railway (ECoR).

The Waltair division has been a major contributor to the East Coast Railway, generating over 100 billion in revenue during 2023–24, which accounts for nearly 50 per cent of the total revenue for the zone. This milestone marks a more than 10 per cent increase compared to the previous year, underscoring the economic significance of the Waltair division and its potential to serve as a strong base for the new railway zone.

Visakhapatnam, as the proposed headquarters, offers several strategic advantages. The new zone will serve major ports such as Visakhapatnam, Gangavaram, Kakinada, and Krishnapatnam, all of which are crucial hubs for cargo and trade. Moreover, Visakhapatnam boasts a readily available land bank for development. The division also houses the largest locomotive shed and an advanced coach maintenance depot, further cementing its role as a railway hub.

Visakhapatnam is one of Asia's fastest-growing urban centres, home to several prestigious organisations, including the Eastern Naval Command, NSTL, BHEL, BARC, HPCL Refinery, and the Hinduja Power Project. The city's infrastructure in medical, educational, and sports sectors aligns well with the anticipated growth resulting from the establishment of the new railway zone headquarters.

Following the bifurcation of Andhra Pradesh in 2014, the need for a dedicated railway zone in the state became more pressing. The headquarters of the South Central Railway is currently located in Secunderabad, Telangana, leaving Andhra Pradesh without a significant administrative railway presence. By integrating the Waltair division of ECoR with the Vijayawada, Guntur, and Guntakal divisions of the South Central Railway, Andhra Pradesh will finally have the long-awaited railway zone it has been striving for.