FedEx to Set Up India’s First Fully Automated Air Cargo Hub.

FedEx is in discussions with the Indian government to establish its first fully automated air cargo hub in the country, aimed at improving connectivity between Indian cities and international markets. The hub would also serve as a regional gateway for South Asia and neighboring markets.

Kami Viswanathan, President of FedEx Middle East, Indian Subcontinent, and Africa (MEISA), shared that the company is working on regulatory changes and collaborating with airport operators to make the project a reality. While there is no specific timeline yet, the proposed hub is seen as a game-changer for India's logistics and trade infrastructure.

Key regulatory adjustments needed include facilitating transshipment, enabling shipments from one country to pass through the hub without significant delays. The infrastructure also requires advanced airside and landside facilities, including space for automated sorting equipment and X-ray screening.

FedEx already operates hubs in cities like Memphis, Guangzhou, Dubai, and Charles de Gaulle, and is eyeing India as a critical market for growth, particularly in e-commerce, B2B, pharma, and automotive sectors. The company expects strong growth, projecting a doubling of business within the next three years.

In terms of investment, Richard W. Smith, FedEx Express President and CEO, shared that the company had invested $350 million in its Dubai hub, which serves as a model for the proposed India facility. FedEx also continues to expand its infrastructure in India, with plans to add flights and enhance gateways in Delhi and Bengaluru.

India's rapid economic growth and its growing role in global trade make it a key focus for FedEx. Smith noted that the country is a crucial market for both international businesses setting up operations in India and Indian businesses expanding globally.

HBL