“Adani Ports’ decision not to process containerized goods from Iran, Pak and Afghanistan to increase logistics costs”

The decision of Adani Ports and SEZ Ltd (APSEZ), which operates in Gujarat, not to process containerized cargo from Iran, Pakistan and Afghanistan from November 15 would increase domestic logistics costs for the export sector, according to exporters. Federation of Indian Export Organizations (FIEO) Vice President Khalid Khan said that due to the decision, shipments to the port of Mundra in Gujarat would be transferred to JNPT, Mumbai, this which would increase congestion.

“This decision will increase the cost of freight by 20 to 25 percent. Congestion at JNPT will also increase. We will urge the ministries of trade and shipping to look into the matter for a solution,” Khan said.

FIEO chief executive Ajay Sahai also said the organization is monitoring development as the restrictions will apply from November 15.

“We expect that cargo from ports administered by Adani will move to other ports. This will lead to an increase in domestic freight, especially for exports from North India and West India, other than areas near Mumbai.

“It is too early to assess its impact on our trade with these countries. What will be its impact on the availability of ships to Iran, overseas freight, etc. are issues that have started to disrupt trade,” did he declare.

After understanding and assessing the development, they would approach the government about it, he added.

Sharing similar views, Founding Chairman of Technocraft Industries India, Sharad Kumar Saraf, said it was a “negative” step.

“The port of Adani should have asked the customs service to reorganize and strengthen the inspection of goods to prevent the importation of drugs. We have friendly relations with Iran and must establish good relations with the new government. Af. They will surely see this step as an unfavorable act, “said Saraf.

True imports from these countries will suffer as imports to other ports become more expensive, he added.

The decision of Adani Ports and SEZ Ltd (APSEZ) came almost a month after the seizure of 2,988 kg of heroin at the port of Mundra located in the district of Kutch in Gujarat.

In a “business advisory” published on Monday, the company said the decision applied to all terminals operated by APSEZ across India.

On September 13, the Directorate of Fiscal Intelligence (DRI) arrested two containers arriving at the port of Mundra from Kandahar in Afghanistan via the Iranian port of Bandar Abbas.

The drug trafficking investigation was handed over to the NIA counterterrorism agency.

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