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Thursday, January 15, 2026

Adani Airports’ decision pushes cargo industry into distress

BusinessAdani Airports’ decision pushes cargo industry into distress

India’s air cargo industry is staring at a major disruption after Mumbai airport’s decision to close critical cargo infrastructure for nearly 10 months, a move that industry players say amounts to a de facto shutdown of cargo operations, even though the airport operator has avoided stating that explicitly.

The concern stems from a communication issued by Chhatrapati Shivaji Maharaj International Airport operator Adani Airports to airline partners, informing them of extensive airside works that will require demolition and reconstruction of the existing cargo infrastructure.

What Adani Airports has communicated
In its letter, Adani Airports said the airport will undertake the construction of Taxiway “E” and complete the pavement reconstruction of Apron “G”, which has reached the end of its operational life. Apron “G” is the only apron at Mumbai airport dedicated to freighter aircraft.

The operator stated that due to land constraints and the need to maintain uninterrupted passenger flight operations, freighter aircraft cannot be accommodated during the construction period, which is scheduled from August 2026 to May 31, 2027.

While the letter refers to the “closure of cargo infrastructure” and suspension of freighter operations, it does not explicitly state that the cargo terminal itself is being shut down. However, industry stakeholders say the outcome is effectively the same.

“With no freighter apron and no alternative cargo infrastructure at the same airport, cargo operations simply cannot function,” said a senior cargo executive. “Call it infrastructure closure or apron reconstruction, it is a shutdown in practice.”

Industry flags serious risks

Mumbai is one of India’s top two air cargo gateways, handling around 80,000 tonnes of cargo every month, including both international and domestic shipments. It serves as a key hub for exporters and importers across Maharashtra, Gujarat, Karnataka and Goa, particularly for pharmaceuticals, perishables, electronics and engineering goods.

The Air Cargo Agents Association of India (ACAAI) has written to Adani Airports expressing deep concern over the planned suspension, warning that dismantling cargo infrastructure without alternate arrangements at the same airport could severely disrupt trade.

In its letter, ACAAI said that while it supports infrastructure upgrades, a prolonged halt in freighter operations at such a critical gateway would lead to reduced uplift capacity, higher freight rates and increased logistics costs for exporters and freight forwarders. The association also cautioned that airlines forced to redeploy freighters to other hubs may not return quickly once operations resume.

Cargo operators call the move a  ‘A systemic capacity shock’

Speaking to CNBC-TV18, Vikram Kumar, Vice President at ACAAI, said the issue goes far beyond routine airport modernisation.

“Demolition without a transparent, phased transition plan risks shutting down cargo operations altogether. This is not merely an infrastructure issue, it is a systemic capacity shock.”

Industry executives argue that cargo operations require an integrated ecosystem including freighter access, ground handling, customs, trucking and cold-chain facilities, all of which are currently centred at Mumbai airport.

Cargo already preparing to move out

With clarity lacking on interim arrangements, cargo operators say customers are already planning alternatives.

Yashpal Sharma of Skyways Group underlined Mumbai’s importance to India’s logistics network.

“Mumbai is a very important gateway for Indian air cargo. With approximately 80,000 tonnes a month, international and domestic combined, this airport acts as a top-two air cargo gateway for India. Dismantling the current cargo infrastructure without any alternate arrangements at the same airport could mean disaster for customers in the catchment.”

He added that the impact is already being felt on the ground.

“The business we move from Mumbai largely comes from or goes to Maharashtra, Gujarat, Karnataka and Goa. Customers are already discussing alternate gateways like Delhi, Bengaluru and Goa. Such a huge disruption is unprecedented in India and will surely increase costs for us and all stakeholders, ultimately impacting logistics costs for customers.”

Bigger questions ahead

While Adani Airports has positioned the works as essential for long-term capacity and safety, the cargo industry argues that modernisation without continuity planning risks hollowing out Mumbai’s cargo hub, even temporarily.

Industry players are now urging the airport operator to engage urgently with cargo stakeholders, spell out mitigation measures, and clarify whether cargo operations at Mumbai are being paused with safeguards or effectively pushed out during the construction window.

For India’s exporters and logistics sector, the fear is that once cargo flows shift away from Mumbai, bringing them back may not be easy.

From The Editorial Team: For more such deep dives, analysis, and exclusive content, click here to become a member of CNBC-TV18 Access, and enter a world of actionable intel through premium business insights, expert opinions, webinars, and LIVE Q&As with India Inc leaders. 

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