In February 2024, FedEx announced a US$350m investment in a new state-of-the-art hub at Dubai World Central Airport (DWC) in Dubai South. The 57,000m2 facility incorporates advanced technologies including automated sorting systems, high-speed x-ray machines and AI capabilities, and will help FedEx keep up with growing air cargo demands in the region.
Hazel King, editor of Parcel and Postal Technology International, spoke to Kami Viswanathan, president of FedEx Express Middle East, Indian Subcontinent and Africa (MEISA), about what the new hub means for the future of FedEx’s Middle East operations.
What makes DWC an attractive location for FedEx?
Situated at DWC, the hub forms an integral component of the region’s aviation and logistics ecosystem. This strategic location is further enhanced by a comprehensive multimodal transportation network, seamlessly connecting air, land and sea. This will enable FedEx to provide customers in the Middle East and globally with faster and more efficient transportation of goods through the world’s largest airport and global gateway upon full completion. In addition, being located at DWC also provides us the opportunity for future flight growth through Dubai, enabling FedEx to further expand its operational and commercial footprint across the region.
How have your operations grown in the area in recent years?
FedEx’s economic footprint in the Middle East and North Africa has consistently grown in recent years. In 2021, the company established its direct commercial presence in Saudi Arabia and Jordan and officially announced the same in Egypt in 2022, to meet the countries’ growing international shipping demands.
In February this year, FedEx expanded its footprint in the Middle East with the launch of its new Middle East, Indian Subcontinent and Africa (MEISA) state-of-the-art air and ground hub at DWC Airport. The launch of this hub marks a long-term investment of more than US$350m into the UAE’s economy through infrastructure and technological advancements in the facility, which significantly boosts our presence and capabilities in the region.
What will the hourly parcel processing capacity of the new hub be?
Spanning more than 57,000m2, the hub represents a significant enhancement to the region’s logistical capabilities. It includes an automated sorting system, currently capable of handling up to 9,000 packages per hour and equipped with a six-sided barcode reader and sorter. This sophisticated technology significantly enhances the efficiency, accuracy and speed of package processing and distribution from the facility.
What has the feedback been from staff working at the hub?
The new hub and its technology are currently operational, and FedEx sees the benefits of next-generation innovation for our team members and operations. We see automation as an opportunity to enhance our team members’ jobs within our system, make them more comfortable, easier and above all, as safe as possible.
What other expansion plans does FedEx have in MEISA?
FedEx is firmly committed to the MEISA region and will continue to make strategic investments in its infrastructure, network and solutions. In addition to launching our DWC hub in the UAE and expanding our footprint in the Middle East and Africa region, FedEx has also been expanding in India. We recently announced a US$100m investment in our first FedEx Advanced Capability Community in Hyderabad, highlighting our commitment to leverage exceptional talent in India to support digital transformation and innovation.
The company has also recently launched its FedEx Life Science Center (LSC) in Mumbai which acts as a one-stop shop for all clinical trial storage and distribution requirements of healthcare customers in India and those shipping to India from around the world. The new center is in addition to FedEx’s current LSCs in Japan, South Korea, Singapore, the USA and the Netherlands – making it a global network of storage and distribution depots to support our healthcare and pharmaceutical customers.
FedEx has been investing in early-stage digital startups in India and the wider region, including a computer vision and AI company and a global circular supply chain solutions provider, through the FedEx Innovation Lab (FIL), showcasing our commitment to technological advancement.
As a part of our regional strategy, we are also constantly looking for innovative ways to expand our services, like the recently launched one-stop multimodal ocean-road solution that seamlessly connects the Asia Pacific with key Middle East markets, as well as digital solutions including the new automated e-commerce capability in FedEx Ship Manager which supports small businesses and e-commerce merchants across the region to efficiently manage their shipments online.
Read more about FedEx’s Dubai hub and other business developments in the March 2024 issue of Parcel and Postal Technology International – click here.