FedEx invests $350 million in a new hub in Dubai

FedEx Express said on Friday that it is expanding its footprint in the Middle East, Indian Subcontinent and Africa by establishing a hub at Dubai World Central Airport in Dubai South. Picture: Supplied

FedEx Express said on Friday that it is expanding its footprint in the Middle East, Indian Subcontinent and Africa by establishing a hub at Dubai World Central Airport in Dubai South. Picture: Supplied

Published Feb 26, 2024

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FedEx Express (FedEx) said on Friday that it is expanding its footprint in the Middle East, Indian Subcontinent and Africa (MEISA) by establishing a hub at Dubai World Central Airport in Dubai South.

The facility was inaugurated by His Highness Sheikh Ahmed bin Saeed Al Maktoum, chairperson of Dubai Airports and chairperson and Chief Executive of Emirates Airline and Group, along with Raj Subramaniam, FedEx Corporation president and CEO, Richard W Smith, FedEx Express president and CEO, Airline and International, and Kami Viswanathan, FedEx Express’ MEISA president, according to a statement.

FedEx said that the 57,000 square metre facility incorporated advanced technologies that includes automated sort systems that enhance the efficiency, accuracy, and speed of package processing and distribution from the facility.

The hub also boasts two automated high-speed X-ray machines, to scan goods and enhance security and a dedicated cold storage area that will cater to temperature-sensitive shipments.

INVESTMENT

FedEx said that this regional hub is a long-term investment of more than $350 million (R6.7 billion) that will focus on infrastructure and technological advancements.

“This investment reaffirms our commitment to revolutionise its operations with cutting-edge technology and innovative practices,” FedEx said.

“The establishment of our new regional hub significantly enhances our presence and capabilities in the MEISA region. This investment is not just about infrastructure expansion; it will contribute to improve the region's connectivity, and play a key role in facilitating global trade and commerce,” said Richard W Smith, FedEx Express president and CEO, Airline and International.

“Given the role of the UAE and Dubai in global trade, our regional hub not only aims to serve the MEISA region, which accounts for approximately 45% of the world’s population and includes key markets like India, Nigeria, South Africa, and Saudi Arabia, but is also a crucial part of our global air network that connects more than 220 countries and territories,” he added.

Kami Viswanathan, president of FedEx MEISA, said that the new hub is a significant step forward towards the company’s vision of building smarter and more sustainable supply chains for everyone.

“Integrating the latest physical infrastructure with digital capabilities powered by artificial intelligence, it enables us to improve efficiency and provide our customers with new capabilities to redefine competitiveness and drive business growth, ultimately contributing to a more connected and resilient global trade ecosystem,” Viswanathan noted.

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