FedEx to Invest $150 Million in New Air Cargo Hub at Delhi Airport

Global express transportation major Federal Express Corporation (FedEx) will invest approximately USD 150 million (more than ₹1,400 crore) to develop a new integrated air cargo hub at GMR Cargo City at Indira Gandhi International Airport (IGIA), Delhi, in a major expansion of its Indian logistics infrastructure aimed at strengthening trade connectivity across North and East India.

The proposed 2,30,000-square-foot facility will bring FedEx’s international gateway and pickup-and-delivery operations under one roof. The groundbreaking ceremony was held on Tuesday in the presence of Civil Aviation Minister K. Rammohan Naidu, with construction expected to begin shortly. Once operational, the hub is designed to increase FedEx’s Delhi processing capacity from 600 to 5,000 packages per hour, an increase of more than eightfold, with scope for further expansion.

The fully automated facility will feature advanced sorting, X-ray and security systems and intelligent package-handling technology. Its location within GMR Cargo City adds strategic importance, as the planned 50-acre integrated cargo development will include warehousing, cold-chain and bonded storage, e-commerce facilities and a Cargo Special Economic Zone. The project has development potential of 1.5-2 million square feet, with Phase I covering nearly 30 acres and around 1 million square feet.

Delhi Airport handled 1.109 million tonnes of cargo in FY2024-25, representing about 29.8% of India’s airport cargo market, and currently has annual cargo capacity of around 1.8 million tonnes. The airport connects more than 150 destinations, strengthening its role as a major international logistics gateway.

The investment comes as the government seeks to make India a stronger global air-cargo and transshipment hub. Naidu said India should become the backbone of air-cargo movements, while Civil Aviation Secretary Samir Kumar Sinha highlighted efforts to remove cargo bottlenecks.

FedEx’s Delhi expansion follows its wider Indian network investments, including a ₹2,500-crore-plus, 3,00,000-square-foot automated hub at Navi Mumbai and a 60,000-square-foot Bengaluru hub capable of processing nearly 4,000 packages per hour.

The Delhi facility is expected to strengthen international logistics for electronics, pharmaceuticals, e-commerce, manufacturing and other time-sensitive industries, while reinforcing FedEx’s broader strategy of connecting Indian businesses to its global network spanning 220-plus countries and territories.