After Dubai, FedEx explores setting up regional ‘Air Hub’ in India – Infrastructure News

FedEx Corp, the world’s largest express transportation company, is exploring plans to establish a regional ‘Air Hub’ in India, aimed at improving connectivity between Indian cities and international markets while functioning as a sub-regional hub for Asia and adjacent markets.

“We have successfully implemented this (regional hub) capability in the United States and other global markets, and we are now excited to bring it to India,” said Richard Smith, COO, International, and CEO, Airline, FedEx, during a press briefing here on Thursday.

The announcement follows FedEx’s inauguration of a $350-million regional hub at Dubai World Central Airport in February.  

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Kami Viswanath, president, FedEx MEISA (Middle East, Indian Subcontinent, and Africa), added that the company is working with the government and airport operators to address regulatory and infrastructural requirements.

“This could be a game changer for India as such a facility does not exist here today,” she said. However, she did not disclose the investment details or the proposed location for the India hub, stating that it is still in the evaluation phase.

A regional air hub acts as a central processing facility for transshipments, operating on a hub-and-spoke model to streamline goods movement between countries.

“One critical regulatory change we need is the ability to transship—allowing shipments from one country to transit through the hub without delays. Simplifying this process is vital,” Viswanath said. 

She also highlighted the need for significant airport infrastructure, including large spaces equipped with automated sorting systems and screening facilities.

FedEx’s decision aligns with projections that India’s export and import volumes will grow two to three times over the next three years. 

Smith noted that India is a key beneficiary of growing regionalisation of supply chains in areas like healthcare, high-tech electronics, aerospace, automotive, and advanced manufacturing. He highlighted that FedEx has already introduced two dedicated flights from India and plans to expand as market demand grows.

Viswanath said South India is a strong focus area for FedEx due to its huge volumes of imports and exports, driven by the growing presence of global businesses in sectors like electronics, pharmaceuticals, aviation, and automotive manufacturing, particularly in the Chennai, Bengaluru, and Hyderabad corridors.

She also noted the shift in focus among direct-to-consumer (D2C) companies and e-commerce marketplaces toward international exports, a significant growth driver.

FedEx also announced its partnership as the principal sponsor and official logistics partner for IPL franchise Chennai Super Kings (CSK) in India and Johannesburg Super Kings (JSK) in South Africa.

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