FedEx To Invest $150 Mn To Develop Air Cargo Hub At Delhi's IGI 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.

It is expected to strengthen air cargo connectivity across North and East India, linking businesses in the region with international markets, FedEx said in a statement, as per news agency PTI.

The groundbreaking ceremony was held in New Delhi on Tuesday in the presence of Union Civil Aviation Minister K Rammohan Naidu.

At the event, Naidu said the investment comes at an appropriate time as manufacturing and several export-oriented sectors expand in India.

"I'd like to congratulate FedEx and Delhi GMR Airport for entering into a partnership to create a dedicated air cargo facility in our Delhi airport. Cargo operations have been consistently increasing over the last few years. We are seeing an almost 40% increase in the volumes," Naidu told reporters, as per news agency ANI.

"We want to create global-standard air cargo facilities across the country, and our vision is also to create cargo hubs, which is why recently we have done the transshipment policy also as a proof of concept, which has given us good success," he added.

According to PTI, Naidu also said that more and more MSMEs are coming up, and manufacturing is expanding in sectors such as electronics and semiconductors.

"We also have a strong pharmaceutical industry in the country, along with a growing perishables sector. Our fruits and vegetables are now finding international markets. This is, therefore, a very appropriate time for FedEx to make a strong investment," Naidu said, as per PTI.

Processing Capacity To Rise

The investment comes as India seeks to expand its air cargo infrastructure amid growth in manufacturing, pharmaceuticals, electronics and exports of perishables.

According to FedEx, the new hub is designed to increase its processing capacity from 600 packages per hour to 5,000 packages per hour once operational. The facility can also be scaled up further, the company said.

The planned investment of $150 million is equivalent to more than ₹1,400 crore at the current exchange rate, as per PTI.

FedEx said the integrated hub will support its express transportation network and improve cargo connectivity from the Delhi airport.

GMR Cargo City will be developed in phases, with construction work expected to begin shortly.

Civil Aviation Secretary Samir Kumar Sinha said efforts were also underway to address bottlenecks affecting air cargo movements, as per PTI.