FedEx to set up regional “Air Hub” in India

American transportation giant FedEx is considering the establishment of a fully automated domestic air cargo hub that will connect cities across India and regional markets to global trade routes.

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FedEx Corp, the world’s largest express transportation company, is planning to establish a regional “Air Hub” in India to enhance connectivity between Indian cities and global markets. This hub aims to streamline transshipments across Asia and adjacent markets, aligning with India’s projected growth in export and import volumes, which are expected to triple over the next three years. This announcement follows the inauguration of FedEx’s US$ 350-million regional hub at Dubai World Central Airport earlier this year. 

A regional air hub serves as a central processing facility for transshipments, operating on a hub-and-spoke model to streamline goods movement between countries.

Richard Smith, COO, International, and CEO, Airline, FedEx stated, “We have successfully implemented this (regional hub) capability in the United States and other global markets, and we are now excited to bring it to India.” 

India’s strategic location and the growing regionalisation of supply chains in sectors like healthcare, high-tech electronics, automotive, and advanced manufacturing make it a critical market for FedEx, he noted.

FedEx has reinforced its presence in India by partnering as the principal sponsor and logistics partner for the IPL franchise Chennai Super Kings and South Africa’s Johannesburg Super Kings. The company has already introduced two dedicated flights from India and plans further expansion in response to market demand.

President of FedEx MEISA, Kami Viswanath highlighted that South India is a strategic focus for FedEx due to high volumes of imports and exports driven by industries such as electronics, pharmaceuticals, aviation, and automotive manufacturing, particularly in Chennai, Bengaluru, and Hyderabad. Moreover, the shift among direct-to-consumer companies and e-commerce marketplaces toward international exports is a significant growth driver, she added.