FedEx to invest $150 million in integrated air cargo hub at Delhi airport

Federal Express Corporation (FedEx) has broken ground for a new integrated air cargo hub at Delhi airport, with the company planning to invest around $150 million in the facility. Spread across 2.3 lakh square feet, the facility will come up at GMR Cargo City at Indira Gandhi International (IGI) Airport.

The groundbreaking ceremony for the project was held in the national capital on Tuesday in the presence of Civil Aviation Minister K Rammohan Naidu, who said India should be the backbone for air cargo movements and that the investment comes at an appropriate time as manufacturing and export-oriented sectors expand in India.

The new facility will bring FedEx’s international gateway operations and pickup-and-delivery activities together at a single location. According to the company, combining these operations under one roof will help speed up the movement of shipments and improve overall efficiency. Once operational, the facility is designed to increase processing capacity from 600 to 5,000 packages per hour, with the company saying it will be highly automated and built with scope for further expansion as shipment volumes and demand increase.

The integrated hub is expected to strengthen air cargo connectivity across North and East India, linking businesses in the region with international markets, FedEx said. At the current exchange rate, the $150 million investment is worth over Rs 1,400 crore.

Kami Viswanathan, President, FedEx Middle East, Indian Subcontinent and Africa (MEISA), said India is a critical market in the company’s global network, with North and East India playing an important role in the country’s growing trade and economic activity. She said strengthening the company’s presence in Delhi will enhance connectivity across these markets and support businesses as they grow and expand, reflecting FedEx’s long-term confidence in India and its commitment to investing in the capacity and capabilities needed to support the country’s evolving trade needs.

The proposed hub will be located at GMR Cargo City, an integrated cargo and logistics development being built at Delhi Airport, spread across 50 acres with a total development potential of around 1.5-2 million square feet.