SFO cargo expansion to boost capacity with automation by 2028
The project is expected to strengthen the airport’s role as a key air cargo gateway on the United States West Coast as cargo volumes continue to grow.
San Francisco International Airport (SFO) is moving ahead with a major expansion of its air cargo infrastructure through an investment exceeding $300 million, aimed at increasing cargo handling capacity and improving operational efficiency through automation. The project is expected to strengthen the airport’s role as a key air cargo gateway on the United States West Coast as cargo volumes continue to grow.
As part of the development, SFO has selected Lödige Industries to provide automated cargo handling technology for the new facility. The company will supply systems designed for automated storage, retrieval and high-throughput cargo operations. The project forms part of the airport’s broader strategy to modernise cargo infrastructure and support the requirements of airlines, freight forwarders and logistics providers operating through the airport.
The new terminal will cover 310,000 square feet across two storeys and is designed to support faster cargo movement through advanced automation. Construction is scheduled to be completed in spring 2028, with operations expected to begin later that year.
“This investment reflects SFO’s commitment to providing modern, efficient cargo facilities that support our airline partners and the regional economy,” says Samuel Chui, Project Manager at San Francisco International Airport.
At the centre of the facility will be three Elevating Transfer Vehicles (ETVs), which will provide automated storage and retrieval of Unit Load Devices (ULDs). The rail-guided systems are capable of moving ULDs both vertically and horizontally at the same time, allowing cargo to be transferred more efficiently throughout the terminal. The technology is intended to improve throughput, streamline workflows and reduce turnaround times.
According to Lödige Industries, the automated systems have been designed to provide scalability as cargo demand increases while supporting digital connectivity across terminal operations.
“The cutting-edge cargo terminal positions SFO at the forefront of West Coast air cargo logistics,” states Jonathan Hardy, Managing Director North America at Lödige Industries. “Our automated systems are engineered for maximum efficiency and scalability, enabling SFO to handle growing cargo volumes while fully leveraging advanced automation and digital connectivity.”
The investment comes at a time when airports across North America are expanding cargo infrastructure in response to increasing e-commerce activity and shifts in global trade patterns. Industry stakeholders have been investing in automation and digitalisation to improve cargo processing speeds and manage higher shipment volumes.
Hardy said the SFO project reflects broader trends across the sector. “Growing e-commerce and global trade are driving an increase in air cargo volumes, prompting key U.S. cargo hubs to expand and modernise. Lödige Industries is dedicated to serving as a reliable strategic partner, supporting airports as they navigate an evolving industry landscape. The project at SFO marks another important milestone in our commitment to innovation in North America’s air cargo industry, building on current projects at New York John F. Kennedy and Toronto Pearson International Airports."
Lödige Industries has maintained a presence in the United States logistics sector since 1985 through its New York-based subsidiary, Lödige USA Inc. The company has delivered automated cargo handling systems at several major airports, including John F. Kennedy International Airport in New York, as well as cargo facilities for Korean Air in Los Angeles and American Airlines in Dallas.
Headquartered in Germany, Lödige Industries specialises in material handling systems, air cargo terminal solutions, warehouse logistics systems and lift technologies. The family-owned company, founded in 1948, reported revenue of €246 million in 2025 and employs approximately 1,500 people worldwide. The SFO cargo terminal project adds to its portfolio of airport automation developments across North America.