FedEx plans to establish first fully automated air cargo hub in India

India could be the next destination for Federal Express Corporation (FedEx), the world’s largest express transportation company, to set up its air cargo, its first fully automated hub, to connect intra-India and regional markets with global trade routes.FedEx is working with the government on regulatory changes to set up the hub, said its President, FedEx Middle East, Indian Subcontinent and Africa (MEISA), Kami Viswanathan.

“We are exploring the opportunity to set up an air hub in India that will help connect Indian cities faster to international markets. It will also act as a sub regional hub for South Asia and other markets adjacent to India. We are working on it very actively. Don’t have a specific time frame right now,” she added.“We are working with the government on the regulatory changes that are required to make this a reality as well as airport operators. It could be a game changer for India because something like that doesn’t exist today,” she told newspersons.

One of the regulatory changes that will be needed is the ability to transship a shipment that is coming from one country but going to another country to move it through the hub without having to spend time or, you know, spend hours on the ground, she said.“Airport infrastructure is another big area, and it is important in our business to have the right infrastructure, air side, land side, large space for automated sortation equipment and X-ray screening,” she said. FedEx has hubs in Memphis, Guangzhou, Dubai, and Charles de Gaulle, she added.

FedEx is seeing good growth in e-commerce, B2B, and pharma and auto sectors. “We’ve had strong double digit growth this last year. We expect to double the business in three years,” she said without giving financials.

On the possible investment in the aero hub, Richard W. Smith, FedEx Express President and Chief Executive Officer, Airline and International, said in February that FedEx launched a hub in Dubai with an investment of $350 million. “This just to give you a sense of the size and the scale of the type of hub that we are talking about,” he added. On India as a market for FedEx, Smith said, “India is a growth story and slated to play a much larger role in global trade going forward. We see global businesses expressing a definite interest in setting up manufacturing and export operations. In India, to serve the India market, but also as an alternative supply source for their global markets, we are also seeing Indian businesses go more international acquiring assets abroad and developing markets in other regions.”“We are investing in capacity into India from Asia and from India westbound to Europe and the US. We are also expanding our infrastructure at our gateways at Delhi and Bengaluru. Earlier this year, we launched a hub at Dubai, which is an enabler for India exports and imports,” he said. FedEx added two dedicated flights for India and plans to add more in the future as the market grows, he added.

India, Vietnam, and Mexico are among the top three fastest-growing markets in the world. India is one of the most dynamic and fast-growing markets on the planet, said Smith.

When asked what action the company is taking on cyber crimes using the FedEx name, Viswanathan said the company is working closely with the Cyber Crime Department to take these complaints and help them track the gangs behind them.