FedEx Corp. announced its second major air freight investment in India this year on Thursday, committing $150 million to a dedicated air cargo hub at Delhi international airport to support growing international trade in the country's northern region. The move brings FedEx's announced investments in Indian air cargo infrastructure this year to at least $400 million, underscoring how global express carriers are racing to build capacity in one of the world's fastest-expanding logistics markets.

The proposed facility would span about 230,000 square feet and feature an advanced, high-speed conveyor belt with automated sorting capability, plus AI-enabled computer vision scanners to route packages. According to a company news release, the project will significantly increase FedEx's (NYSE: FDX) processing capacity at the airport from 600 to 5,000 packages per hour, while consolidating scattered international pickup-and-delivery operations under one roof to enable greater operational efficiency and faster shipment flow. Flexible design elements will accommodate future expansion needs. The roughly eightfold increase in throughput reflects the automation-driven design of the new terminal, which replaces a far smaller existing operation at the airport.

The new FedEx terminal will sit within a larger planned cargo campus being developed by GMR Airports Ltd. The campus is intended to house airlines, freight forwarders and service providers on the airport's property, supporting India's growing trade, e-commerce and express logistics requirements. Phase 1 of the project will comprise about 1 million square feet, with construction expected to begin soon. A second phase could add another 500,000 to 1 million square feet of developed space. Delhi is one of India's busiest air cargo gateways, and the campus model—bringing carriers, forwarders and handlers onto a single airport site—follows a broader push in Indian aviation to expand dedicated freight infrastructure alongside passenger capacity.

FedEx will lease the cargo warehouse but is responsible for installing all systems, equipment and technology. That arrangement, which mirrors its approach at Navi Mumbai, lets the carrier tailor automation and sorting systems to its own network while relying on the airport operator for the underlying real estate.

"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. 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," said Kami Viswanathan, president of FedEx Middle East, Indian Subcontinent and Africa, in a statement issued in conjunction with a ground-breaking ceremony.

India is one of the fastest-growing economies in the world and the United States' tenth-largest trade partner. Last year it recorded more than $1.2 trillion in merchandise exports and imports, according to the Ministry of Commerce and Industry. That trade volume, combined with the rapid rise of Indian e-commerce and manufacturing exports such as pharmaceuticals, has driven demand for dedicated express air freight capacity—demand that both global integrators and domestic logistics players are moving to meet.

In February, FedEx announced a $250 million investment in a custom air cargo facility at Navi Mumbai International Airport, a new airport that opened to passenger traffic in December and operates alongside the original Mumbai airport. FedEx shares a multi-user cargo terminal at the legacy Mumbai International Airport, with certain processing activities occurring off airport property. The Navi Mumbai facility is designed to enable on-airport parcel and freight processing, and FedEx will continue to operate at the original Mumbai airport after moving into the new site.

Separately, the Adani Group is developing an integrated cargo area at Navi Mumbai to serve as a trade gateway for western India, with first-phase capacity of 500,000 million metric tons per year.

In December, FedEx opened a 60,000-square-foot freight facility at Kempegowda International Airport in Bengaluru, in southern India, consolidating import and export activities in one location. The facility handles parcels as well as industrial, pharmaceutical and manufacturing shipments, with throughput capacity of 4,000 packages per hour. With the Delhi, Navi Mumbai and Bengaluru facilities, FedEx is building a multi-hub footprint spanning India's northern, western and southern freight corridors; further expansion announcements from competing carriers in the Indian air cargo sector remain a development to watch.