The company is ‘actively working’ on the project and is in consultations with the government on requisite regulatory changes that will be needed to set up such a hub, senior executives of the firm said while addressing media to announce the company being the ‘Principal Sponsor’ and the ‘Official Logistics Partner’ for Chennai Super Kings (CSK) in India and Johannesburg Super Kings (JSK) in South Africa.
“We are exploring the opportunity to set up an air hub in India that will help connect Indian cities faster to international markets,” Kami Viswanathan, president, FedEx Middle East, Indian Subcontinent and Africa (MEISA) said. “It will also act as a sub regional hub for South Asia and other markets adjacent to India. We are working on it very actively. Don’t have a specific time frame right now.”
When asked what the size of the investment for such an air hub would be, Richard W Smith, FedEx Express president and chief executive officer (CEO), Airline and International, said that in February the company launched a hub in Dubai with an investment of $350 million. “This just to give you a sense of the size and the scale of the type of hub that we are talking about,” he said.
Calling it a game changer, Viswanathan said that one of the critical regulatory changes will have to be the ability to transship a shipment that is coming from one country but going to another country to move it through the hub without having to spend time or spend hours on the ground.
“Airport infrastructure is another big area, and it is important in our business to have the right infrastructure, air side, land side, large space for automated sortation equipment and X-ray screening,” she said.
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Smith said India was among the top three fastest growing markets in the world, along with Vietnam and Mexico. He highlighted that the company has experienced strong double-digit growth in the last year and expects to double its business in three years. The company is also expanding its infrastructure at key gateways in India, such as Delhi and Bangalore, to support its growth strategy in the region.”India is a growth story and slated to play a much larger role in global trade going forward,” he said. “We see global businesses expressing a definite interest in setting up manufacturing and export operations. In India, to serve the India market, but also as an alternative supply source for their global markets, we are also seeing Indian businesses go more international acquiring assets abroad and developing markets in other regions.”
