FedEx Express, the largest express delivery company in the world, is set to build a new Dubai hub near the Dubai World Central (DWC) within the Logistics District to expand its services in the Middle East, the Indian Subcontinent, and Africa (MEISA) region. The new regional center at Dubai South will utilize advanced technologies to help the company meet its rising trade demands and expand its regional and global networks along with its operational efficiencies.
The agreement signed with Dubai South on November 2 confirms FedEx’s network expansion program in Dubai. Jack Muhs, FedEx Express’ regional president, clarified the motive behind the company’s move to set up a new regional Dubai hub pertaining to its ideal location and latest technology solutions that will serve the growing trade needs and strengthen its presence in the MEISA region. The new facility in Dubai South, the largest single urban master development in Dubai, which is the home to Al Maktoum International Airport, will also expedite upcoming international air traffic growth.
Highlighted features for New FedEx Express Dubai hub
The new FedEx Express Dubai hub has some highlighted features encompassing the latest technologies such as automated and advanced sorting systems, cold-chain services, hi-speed security screening equipment to maximize security and minimize delay along with dangerous goods management capability. Sustainability and energy use will be the major focus regarding the development of the new center. It will help increase the overall customer experience and provide businesses and customers’ faster access to the new regional facility.
Khalifa Alzaffin, the Executive Chairperson of Dubai Aviation City Corporation, expressed his delight to assist FedEx with their optimal operational solutions, bespoke services, and state of the art infrastructures that will further spark their positions as the preferred choice through multiple opportunities with the significant number of industry players operating therefrom through a multi-modal platform.
Dubai as an ideal location
Dubai has positioned itself as the ideal location for global air and sea logistics providers due to its state of the art infrastructures and technologies, economic free zones, airports. The new cutting-edge hub at Dubai South is ideal for mega logistics players like FedEx to create expansion opportunities. Dubai South’s Logistic District is purpose-built to offer leading solutions to the global supply chain system comprising a logistics corridor, warehouse facilities, flexible storage system, e-commerce zone EZDubai, etc. FedEx Express will connect directly to locations in the Middle East, Indian subcontinent, and Africa through Dubai’s gateway facility and regional hub.
Coronavirus pandemic’s impact on logistics
Logistics companies have experienced a soaring global demand for cargo since the start of the pandemic last year as the demand outperformed pre-pandemic levels. While the passenger sky remained deprived of enough passenger traffic, cargo remained the bright sport for the aviation industry to transport time-sensitive and just-in-time shipments and retain the revenue. The data released by International Air Transport Association (IATA) in April 2021 revealed the rise of international capacity from dedicated cargo planes. In August 2021, the Middle East witnessed the international cargo volume rise by 15.4% as compared to the pre-pandemic year, i.e., in August 2019.
According to the International Monetary Fund, it is projected that global trade will surge 6.7% in 2022, masking a subdued outlook for economies dependent on tourism and cross-border services.
Dubai World Central
Built south of the city, Dubai World Central is Dubai’s future airport that’ll be the world’s largest gateway and cater as a multi-modal logistics hub for 12 million tons of cargo per annum. Cathay Pacific, Ethiopian Airlines, Cargolux, China Airlines, etc., base their cargo operations at Dubai World Central. Once it is completed, it will ease the pressure on Dubai International Airport by handling more than 220 million passengers a year and contributing to Dubai’s economic growth. It will support the economic fields of aviation, tourism, and logistics in Dubai, offering business-friendly free zone benefits and investment opportunities complementing multi-model transport infrastructures.
About FedEx Express
FedEx Express is an American multinational logistics and shipping company connecting people, places, and cultural diversity from Harlem to Hong Kong, from Sao Paulo to Sydney, etc. Headquartered in Memphis, Tennessee, its extensive network covers more than 220 countries and territories, providing time-sensitive, air-ground express service through more than 650 airports in the world. As of the year 2020, FedEx Express is one of the largest carriers in the world according to its fleet size and tons of cargo flown.