FedEx to invest USD 150 million for air cargo hub at Delhi airport

Federal Express Corporation (FedEx) plans to invest USD 150 million to develop an integrated air cargo hub spread across 2,30,000 square feet at the Delhi airport, the company said Tuesday, August 25.

The groundbreaking ceremony for the facility was held in the national capital in the presence of Civil Aviation Minister K. Rammohan Naidu, who said India should be the backbone for air cargo movements.

The hub will come up at GMR Cargo City at the Indira Gandhi International Airport (IGIA) and will help strengthen connectivity across North and East India, linking businesses with global markets, FedEx said in a release.

"The proposed facility represents a long-term investment of approximately USD 150 million by FedEx," the release said. At the current exchange rate, USD 150 million is worth over Rs 1,400 crore.

Once operational, the facility is designed to increase processing capacity from 600 to 5,000 packages per hour, with scope for further scaling, according to FedEx.

GMR Cargo City will be developed in phases, and construction work is expected to start shortly.

At the ceremony, Civil Aviation Secretary Samir Kumar Sinha said efforts are on to remove all bottlenecks for air cargo movements.

FedEx is a leading express transportation company that uses a global air and ground network for shipments.

(Inputs from PTI)