India's cargo industry is in distress. Reason? Adani
What's the story
Mumbai's Chhatrapati Shivaji Maharaj International Airport, operated by Adani Airports, is set to undergo extensive airside works for nearly 10 months, which industry stakeholders interpret as a de facto shutdown of cargo operations. The decision has raised concerns in the air cargo industry as it could disrupt operations at one of India's busiest air cargo hubs. Adani Airports informed airline partners about extensive airside works that will involve demolishing and reconstructing existing cargo infrastructure.
Operational impact
Cargo operations to be suspended during reconstruction
The planned works include the construction of Taxiway "E" and pavement reconstruction of Apron "G," which is exclusively used by freighter aircraft. The airport operator has said that due to land constraints and the need to keep passenger flights running, freighter aircraft cannot be accommodated during this period from August 2026 to May 31, 2027.
Stakeholder reactions
Industry stakeholders express concerns over cargo terminal closure
While Adani Airports's letter doesn't explicitly mention the shutdown of the cargo terminal, industry stakeholders have expressed their concerns. A senior cargo executive said, "With no freighter apron and no alternative cargo infrastructure at the same airport, cargo operations simply cannot function." They added that whether it's called infrastructure closure or apron reconstruction, it amounts to a shutdown in practice.
Cargo hub
Mumbai airport handles 80,000 tons of cargo monthly
Mumbai is one of India's top two air cargo gateways, handling some 80,000 tons of cargo every month. The airport serves as a key hub for exporters and importers across Maharashtra, Gujarat, Karnataka and Goa. The Air Cargo Agents Association of India (ACAAI) has expressed deep concern over the planned suspension, and warned that dismantling cargo infrastructure without alternate arrangements could severely disrupt trade.
Cost implications
ACAAI warns of increased costs for exporters
The ACAAI has warned that a prolonged halt in freighter operations at such a critical gateway would lead to reduced uplift capacity, higher freight rates, and also increased logistics costs for exporters and freight forwarders. The association also said that airlines forced to redeploy freighters to other hubs may not return quickly once operations resume.
Shift in operations
Cargo operators consider alternate gateways amid uncertainty
With no clarity on interim arrangements, cargo operators say the customers are already planning alternatives. Yashpal Sharma of Skyways Group stressed Mumbai's importance to India's logistics network and said customers are already discussing alternate gateways like Delhi, Bengaluru, and Goa. He warned that dismantling the current cargo infrastructure without any alternate arrangements could mean disaster for customers in the catchment area.