FedEx Commits $400 Million to Indian Air Cargo Growth With Delhi, Mumbai Hubs

FedEx is investing $150 million to develop an integrated air cargo hub at Delhi's Indira Gandhi International Airport, with completion expected within 12 to 18 months.

The proposed 230,000-square-foot facility, located within the airport's 50-acre GMR Cargo City complex, will bring the company's international gateway and pickup-and-delivery operations under one roof. Once operational, it is expected to increase FedEx 's processing capacity in Delhi from 600 packages per hour to 5,000 on average, with scope to scale up further.

The logistics giant plans to introduce extensive automation at the facility, including automated sortation systems and high-speed X-ray screening equipment, in an effort to enable shipments to be processed more efficiently while increasing throughput.

The groundbreaking ceremony for the facility was held in the national capital on Tuesday attended by India's civil aviation minister Kinjarapu Rammohan Naidu.

Delhi Airport is India's leading air cargo hub , moving 1 million metric tons of freight per year, according to Naidu.

" India is a critical market in our global network, with north and east India playing an important role in the country's growing trade and economic opportunity," said Kami Viswanathan, president of FedEx Middle East, Indian Subcontinent and Africa (MEISA) in a statement. "Strengthening our presence in Delhi will enhance connectivity across these markets and support businesses as they grow and expand. It reflects our long-term confidence in India and our commitment to investing in the capacity and capabilities needed to support the country's evolving trade needs."

The Delhi hub is one three air gateways FedEx operates in the country. Delhi supports the northern and eastern parts of India, complementing a hub in Bengaluru in the south and Mumbai on the west coast.

In February, the logistics provider announced a long-term investment of $250 million in a new cargo hub at Navi Mumbai International Airport, bringing the combined commitment in the new Indian hubs to $400 million. That month, FedEx and the airport broke ground on the fully automated 300,000-square-foot facility.

The regional consolidation and distribution hub is planned to commence with an initial handling capacity of approximately 500,000 metric tons annually, scaling in phases to around 2.6 million metric tons in its final development stage.