FedEx is investing more than USD 400 million in developing advanced air cargo infrastructure at Delhi and Navi Mumbai international airports, aiming to strengthen India’s connectivity with global markets and expand its logistics capabilities. The investment reflects the company’s confidence in India’s rapidly growing economy and its emerging importance in international trade and supply chains.
Nitin Navneet Tatiwala, Vice-President of Marketing, Customer Experience and Air Network for the Middle East, Indian Subcontinent and Africa (MEISA) at FedEx, said the company is focusing on expanding infrastructure capacity to improve India’s integration with its worldwide network.
“The way we look, India is not just a critical market for us globally, given that India is growing, it is one of the fastest growing GDPs in the world. But we also see India as an important turnover point for FedEx from a network standpoint. This is where you would see investments like GMR (Delhi International Airport) and investments like Navi Mumbai coming into picture now,” Tatiwala told ETInfra.
Two Major Cargo Facilities Planned
Of the proposed investment, USD 150 million has been allocated towards a fully automated, integrated air cargo facility spanning 230,000 sq. ft. at GMR’s cargo city in Delhi airport. At Navi Mumbai International Airport, the company plans to establish a 300,000 sq. ft. automated cargo hub, involving a long-term investment exceeding USD 250 million.
Delhi will primarily serve northern and eastern India, while Navi Mumbai is expected to function as a major distribution centre for western India and heavyweight freight movements across the country.
“Delhi will largely be focusing on North India and East India, while Mumbai is going to be more of a hub, not just for West India but also for freight operations across India where we will be moving all the heavyweight items, which we call it as freight into Mumbai and then connecting it to the world,” said Tatiwala.
FedEx has already commenced construction at both locations following groundbreaking ceremonies. The facilities are expected to become operational within approximately 18 months.
Focus On Pharmaceuticals And Semiconductors
The company is also targeting growing opportunities in India’s pharmaceutical, electronics and semiconductor sectors. Its investments will support specialised transportation requirements, including temperature-controlled pharmaceutical shipments and high-value semiconductor components.
FedEx is further strengthening its pharmaceutical logistics network through its global ‘Cold Corridor’, connecting India with major markets across Europe, Asia and the United States.
Having operated in India since 1997, FedEx currently runs nearly 40 scheduled weekly flights to and from the country. It aims to improve shipment efficiency, increase cargo capacity and reduce transshipment time through its expanding infrastructure and digital logistics capabilities.
Source: Economic Times
