India's largest port operator, Adani Ports and Special Economic Zone (APSEZ) will no longer handle any kind of containerised cargo from Afghanistan, Iran, and Pakistan. The strategic shift follows the massive drug haul at Mundra port in India.
The trade advisory effective from 15 November read, "Adani Ports and SEZ will not handle EXIM containerised cargo originating from Iran, Pakistan, and Afghanistan at all its terminals." It will also apply to third-party terminals at ports.
Even though no specific reason has been cited for the recent action, it is believed that this signified the company drawing a line in response to the seizure of heroin worth US$2.65 billion from two containers at the Western port of Mundra, with the investigation revealing that the drugs originated in Afghanistan and had been dispatched from the Bandar Abbas Port in Iran.
Defending themselves after the seizure, the group issued a statement emphasising the restrictions on terminal operators to examine containers and their content.
The recent travel advisory has brought along growing concerns over the impact on supply chain and trade routes. The supply of agricultural imports like dry fruits, cereals along with chemicals, mineral fuels and aluminium is expected to be hit the worst.
With Mundra port, the largest commercial port of India closed to imports worth more than US$260 million, traders expect the cargo to be diverted to JNPT at Nhava Sheva which might result in a spike of more than 20% in export costs.
Ankur Kundu
Correspondent
