USD 350 million investment by FedEx in Dubai hub

The official inauguration of FedEx Express’ new, Middle East, Indian Subcontinent and Africa (MEISA) state-of-the-art hub at Dubai World Central Airport (DWC) took place on 20FEB24, and was carried out by Sheikh Ahmed bin Saeed Al Maktoum, President of the Dubai Civil Aviation Authority, Chairman of Dubai Airports and Chairman and Chief Executive of Emirates Airline and Group, in the company of 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.

Big money for a larger Middle East footprint. Image: FedEx

In its effort to expand its footprint in the MEISA region, FedEx is investing USD 350 million in the hub in Dubai South and thus the UAE economy, supporting the nation’s ‘National Agenda for Non-oil Export Development’, aimed at increasing the UAE’s foreign trade.

The 57,000 m² hub has been designed with sustainability (FedEx aims to be carbon neutral by 2040) and technology in mind. Automated sort systems enable faster, more accurate package processing and distribution, and two automated high-speed x-ray machines equipped with artificial intelligence ensure efficient scanning and improved security. The hub offers a 170 m² cold storage area for temperature-sensitive shipments. Solar power and a smart building management system ensure efficient energy use, and electric ground service vehicles and charging infrastructures enable cleaner logistics.

Richard W. Smith, FedEx Express President and Chief Executive Officer, Airline and International, stated: “The establishment of our new hub in the UAE is a strategic move that significantly boosts our presence and capabilities in the MEISA region. This investment is not just about expanding our network; it’s about enhancing the region’s connectivity and playing a key role in facilitating trade and commerce across the world. Given the UAE’s current status among the top five countries in global re-export operations, our regional hub not only aims to serve the MEISA region, which accounts for approximately 45% of the world’s population, but is also a crucial part of our global air network that connects 220 countries and territories.”

Kami Viswanathan, President of FedEx Express Middle East, Indian Subcontinent and Africa, added: “The new FedEx hub marks a pivotal stride in our growth strategy to build a more flexible, efficient, and smart network, to deliver outstanding services that fit our customers’ needs [and] exemplifies our commitment to transforming our operations through automation and building a smarter and more sustainable logistics network.

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