Global logistics giant FedEx on Tuesday, 25 August announced an investment of approximately $150 million to develop an integrated air cargo hub at GMR Cargo City, located within Indira Gandhi International Airport in New Delhi. The facility marks one of the largest single logistics infrastructure commitments by a global express carrier in India in recent years.

What the Facility Will Look Like

The proposed hub will span around 230,000 square feet and consolidate international gateway operations alongside pickup-and-delivery functions under a single roof. The fully automated facility is designed to scale processing capacity from the current 600 packages per hour to 5,000 packages per hour, with further expansion headroom built in as trade volumes grow.

The hub will be equipped with an advanced auto-sorter, latest-generation X-ray machines, enhanced security systems, and intelligent package-handling technologies — infrastructure aimed at tightening transit times and improving network resilience across North and East India.

What FedEx Said

Kami Viswanathan, President of FedEx Middle East, Indian Subcontinent and Africa (MEISA), described India as a critical market in the company's global network. 'Strengthening our presence in Delhi will enhance connectivity across these markets and support businesses as they grow and expand. It reflects our long-term confidence in India and our commitment to investing in the capacity and capabilities needed to support the country's evolving trade needs,' Viswanathan said.

GMR Cargo City: The Larger Picture

GMR Cargo City is an integrated cargo and logistics development being built at Delhi Airport, spread across 50 acres with a total development potential of approximately 1.5 to 2 million square feet. Phase 1 will comprise roughly 1 million square feet across nearly 30 acres. Detailed design for Phase 1 has been finalised and enabling works have commenced, with full construction expected to begin shortly.

Rajesh Arora, President and CEO, Commercial and Growth at GMR Airports Ltd, said FedEx's decision to anchor at GMR Cargo City was an endorsement of Delhi Airport's growing role as a global logistics gateway. He added that the hub would strengthen trade connectivity for businesses across North and East India while supporting India's expanding e-commerce and express logistics sectors.

Government Presence and Policy Context

The groundbreaking ceremony was attended by Civil Aviation Minister Kinjarapu Rammohan Naidu, signalling government backing for the project. This comes amid India's broader push to position its airports as multimodal trade hubs, with air cargo volumes rising on the back of e-commerce growth and post-pandemic supply-chain restructuring. Notably, Delhi's IGI Airport is already among South Asia's busiest cargo gateways, and this investment could further consolidate its position.

What Comes Next

Construction timelines have not been formally disclosed, though enabling works are already under way at GMR Cargo City. Once operational, the hub is expected to benefit exporters and importers across the National Capital Region (NCR) and broader northern and eastern India. The scale-up to 5,000 packages per hour would represent more than an eight-fold increase in throughput capacity.