According to Business-Today, FedEx is planning to invest around $150 million (over Rs 1,400 crore) to develop an integrated air cargo hub spanning 2.3 lakh square feet at Delhi's Indira Gandhi International Airport (IGIA). The facility, to be built at GMR Cargo City, will lift package processing capacity from 600 to 5,000 packages per hour once operational, with room to scale further.
Investment and Capacity Expansion
The groundbreaking ceremony for the facility was held in the national capital on Tuesday in the presence of Civil Aviation Minister K Rammohan Naidu. FedEx said in a release that the proposed facility represents a long-term investment of approximately $150 million. The company's package processing capacity at the hub will rise over eight-fold — from 600 packages per hour to 5,000 packages per hour — and can be scaled up further, FedEx added.
| Metric | Current | Planned |
|---|---|---|
| Package processing capacity | 600 packages/hour | 5,000 packages/hour |
| Investment | — | ~$150 million (over Rs 1,400 crore) |
| Facility size | — | 2.3 lakh square feet |
| Location | — | GMR Cargo City, IGIA, Delhi |
Government Backing and Policy Push
At the groundbreaking ceremony, Naidu said India should become the backbone of global air cargo movements. He also noted that cargo operations had been consistently increasing, with volumes seeing an increase of almost 40 per cent.
"I would like to congratulate FedEx and Delhi GMR Airport for entering into a partnership to create a dedicated air cargo facility at our Delhi Airport."
Naidu highlighted the government's focus on creating cargo hubs, referencing the newly introduced transshipment policy as a proof of concept that has seen good success, and the aim to improve air freight stations across the country. Civil Aviation Secretary Samir Kumar Sinha said efforts were being made to remove bottlenecks affecting air cargo movements.
The hub is aimed at strengthening air cargo connectivity across North and East India and linking businesses with global markets, according to FedEx.
Implications for Shippers and Operators
For freight forwarders, 3PL operators, and shippers relying on air cargo out of India, the expanded processing capacity at Delhi — one of the country's busiest gateways — signals a potential reduction in cargo handling time and greater throughput for express shipments. The facility's scalability also suggests that capacity could grow to match future demand. FedEx is an express transportation company that operates a global air and ground network, so the hub will likely integrate into its broader Asia-Pacific lane structure.
Watch List
- Construction timeline: GMR Cargo City will be developed in phases, with construction work expected to begin shortly.
- Transshipment policy rollout: The government's proof-of-concept transshipment policy could expand, affecting transshipment volumes through Indian airports.
- Air freight station expansion: Government plans to improve air freight stations across the country could complement the new hub's regional connectivity.
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