FedEx Eyes India for its First Fully Automated Air Cargo Hub

Aimed at connecting intra-India and regional markets to global trade routes, the development underscores India’s increasing prominence in global trade and logistics. Kami Viswanathan, President of FedEx Middle East, Indian Subcontinent, and Africa (MEISA), recently revealed that the company is actively working on regulatory and infrastructural challenges to realise this vision. The proposed hub would serve a dual purpose: linking Indian cities more efficiently to international markets and acting as a sub-regional hub for South Asia and neighbouring regions. FedEx is currently working with the government on the regulatory changes that are required to make this a reality as well as airport operators. Viswanathan emphasized that this facility could be a “game-changer” for the Indian logistics landscape.

Currently, India lacks a dedicated, fully automated air cargo hub of this scale, and the envisioned hub would address a critical gap. Regulatory changes, including enabling transshipment processes without significant ground delays, are seen as essential for its establishment. Additionally, the hub would require significant airport infrastructure, such as air-side and land-side facilities, large spaces for automated sortation equipment, and advanced X-ray screening systems.

FedEx’s decision to focus on India aligns with the robust growth of sectors such as e-commerce, business-to-business (B2B), pharmaceuticals, and automotive logistics. According to Viswanathan, FedEx has experienced strong double-digit growth in India and aims to double its business in the next three years. The company’s plans include bolstering its infrastructure at key gateways like Delhi and Bengaluru. Furthermore, FedEx has already launched a $350 million hub in Dubai, illustrating the scale of investment it may consider for the Indian market.

Richard W. Smith, President and CEO of FedEx Express, highlighted India’s growing importance in global supply chains. “India is a growth story and slated to play a much larger role in global trade going forward,” he said. With global businesses increasingly looking to India as a manufacturing and export hub, the country is emerging as an alternative supply source to meet global demand. Despite the promising outlook, significant challenges remain. Regulatory hurdles, such as streamlining transshipment processes, and the need for large-scale airport infrastructure improvements, must be addressed. Additionally, the high capital investment required for automation and operational excellence may pose initial barriers.

FedEx is also tackling an unrelated but pressing issue: cybercrimes exploiting the FedEx name. Viswanathan emphasized that the company is working closely with the Cyber Crime Department to address these challenges and bring perpetrators to justice. As India solidifies its position in global trade, FedEx’s plans to establish an automated air cargo hub could redefine the country’s air freight landscape. By enhancing connectivity, boosting exports, and fostering economic growth, this initiative represents a pivotal step in aligning India’s logistics infrastructure with its aspirations to become a global supply chain leader.

For the air cargo industry, this development signals a future of greater efficiency, innovation, and competitiveness, setting the stage for India’s emergence as a regional logistics powerhouse.