FedEx to build $150mn automated cargo hub at Delhi Airport
The 230,000 sq ft Delhi hub will feature automated sorting, advanced X-ray and security systems to enhance handling of express, e-com and high-value cargo.
Federal Express Corporation (FedEx) has announced plans to invest approximately $150 million in a new fully automated integrated air cargo hub at GMR Cargo City, Indira Gandhi International Airport, Delhi, strengthening its network across North and East India and connecting businesses in these markets with destinations worldwide.
Announced in the presence of India's Minister of Civil Aviation, Kinjarapu Rammohan Naidu, the proposed 230,000 sq ft facility will bring FedEx’s international gateway and pickup-and-delivery operations together under one roof. Once operational, the fully automated hub is designed to increase processing capacity from 600 to 5,000 packages per hour, with flexibility to scale further as demand grows.
The investment comes as India’s trade and logistics infrastructure continues to evolve, with express cargo, e-commerce and high-value shipments creating demand for faster and more integrated air cargo operations.
Kami Viswanathan, President, FedEx Middle East, Indian Subcontinent and Africa (MEISA), said, “India is a critical market in our global network, with North and East India playing an important role in the country’s growing trade and economic opportunity. Strengthening our presence in Delhi will enhance connectivity across these markets and support businesses as they grow and expand.”
The proposed hub will feature an advanced auto-sorter, latest-generation X-ray machines, enhanced security systems and intelligent package-handling technologies. FedEx said these capabilities will support faster shipment processing, strengthen network resilience and improve the customer experience.
GMR Cargo City takes shape
The FedEx facility will form part of GMR Cargo City, an integrated cargo and logistics ecosystem being developed at Delhi Airport. The 50-acre development has a total potential of approximately 1.5 to 2 million sq ft. Phase 1 will comprise approximately 1 million sq ft across nearly 30 acres. Its detailed design has been finalised, enabling works have commenced and construction is expected to begin shortly.
Rajesh Arora, President & CEO – Commercial & Growth, GMR Airports, said FedEx’s decision reinforces Delhi Airport’s position as a strategic global logistics gateway. “FedEx’s decision to develop its new integrated air cargo hub at GMR Cargo City is a strong endorsement of Delhi Airport’s growing stature as a strategic global logistics gateway.”
He said the development would bring together infrastructure, technology and logistics partners to enable faster cargo movement while supporting India's expanding trade and e-commerce requirements.
For FedEx, the key feature of the new facility will be the integration of international gateway and pickup-and-delivery operations. This is intended to reduce operational handoffs and create a more seamless flow between international cargo processing and domestic distribution.
Part of a wider India investment
The Delhi investment follows FedEx’s February 2026 groundbreaking for its first dedicated integrated cargo terminal in India at Navi Mumbai International Airport (NMIA).
The company has committed more than ₹25 billion to the 300,000 sq ft automated facility, which will connect India with Southeast Asia, West Asia, Europe and the US. The project is expected to create more than 6,000 direct and indirect jobs once operational.
At the groundbreaking, Raj Subramaniam, President and Chief Executive Officer of FedEx, described the investment as a long-term commitment to India. “Investment of over $250 million, demonstrating our confidence in India’s growth trajectory and our commitment to building the capabilities to support it.”
He added, “We do not see this as a temporary trend, but a long-term shift as the world re-globalises.” The Delhi and Navi Mumbai projects form part of FedEx’s broader effort to expand its infrastructure in India, with each facility positioned to serve different cargo markets and geographic regions.
Automation and connectivity
The scale of the planned Delhi hub reflects FedEx’s expectations for continued growth in express and international cargo. Increasing processing capacity more than eightfold, from 600 to 5,000 packages per hour, will give the company additional room to handle rising volumes while maintaining faster processing times.
The hub's planned technology infrastructure is also designed to support secure and reliable cargo movement as shipment volumes become increasingly diverse. For North and East India, the facility is expected to provide stronger links to FedEx’s international network while supporting exporters and importers that require time-sensitive transportation.
The investment also highlights the growing importance of airport-based logistics ecosystems. Rather than operating cargo handling and distribution as separate functions, integrated facilities can bring international processing, security, sorting and domestic delivery closer together.
For GMR Cargo City, FedEx’s planned hub adds a major global express operator to its developing cargo ecosystem. For FedEx, it provides additional capacity at a strategic gateway serving some of India's most important commercial centres.
As India's role in global trade expands, the ability to move shipments quickly from production centres to international markets will become increasingly important. FedEx's latest investment signals its intention to build that capacity ahead of demand, with Delhi emerging as a key component of its long-term India network.
This article was originally published on Indian Transport & Logistics News (ITLN).
