Daijiworld Media Network - New Delhi
New Delhi, Aug 25: Federal Express Corporation (FedEx) plans to invest around $150 million, or more than Rs 1,400 crore, to develop a 2,30,000-square-foot air cargo hub at Delhi airport, aimed at strengthening India's connectivity with global markets.
The groundbreaking ceremony for the facility was held in New Delhi on Tuesday in the presence of Civil Aviation Minister K Rammohan Naidu.
Speaking at the event, Naidu said India should emerge as the backbone of global air cargo movements and stressed the importance of strengthening the country's cargo infrastructure.
The integrated air cargo hub will be established at GMR Cargo City at Indira Gandhi International Airport (IGIA). According to FedEx, the facility will strengthen air cargo connectivity across northern and eastern India and provide businesses in these regions with improved access to international markets.
Once operational, the hub is expected to significantly increase FedEx's package-processing capacity. The company said processing capacity would rise from the current 600 packages per hour to 5,000 packages per hour, with scope for further expansion in the future.
“The proposed facility represents a long-term investment of approximately $150 million by FedEx,” the company said.
FedEx is a global express transportation company that operates an integrated air and ground network to transport shipments across international markets.
The new facility will form part of GMR Cargo City's phased development at Delhi airport. Construction work is expected to begin shortly.
At the groundbreaking ceremony, Civil Aviation Secretary Samir Kumar Sinha said the government was working to remove bottlenecks affecting air cargo movement and create an environment that would support the growth of the sector.
The investment comes amid India's efforts to expand its aviation and logistics infrastructure and increase its role in international air cargo. The proposed FedEx hub is expected to provide additional cargo-handling capacity while improving connections between Indian businesses and overseas markets.