FedEx Express has signed an agreement to build a new facility at Istanbul Airport. It will make a massive difference to its production line and increase opportunities to double its presence at the airport. Currently, the overnight courier is sharing a location at the airport.
The new facility will have three parking areas for FedEx aircraft, space for 32 vans, and seven docks and trucks. It will also enable FedEx to process 3,000 pieces per hour.
November 2024 is D-day
The new facility is expected to take more than a year to complete. Owning its own space will impact its reliability and allow it complete control over operations.
In a statement, FedEx revealed the facility can separate parcel and freight processing.
“We are delighted with our expansion at Istanbul Airport, which gives FedEx an even stronger position in this strategic location and opens up growth opportunities for customers transacting intercontinental,” says FedEX’s vice president for operations in the region, Eser Sezek.
“The fact that FedEx has chosen to locate its new global air cargo facility on our site reflects iGA Istanbul Airport’s position as a strategic super hub, not only for passengers but also for the cargo and logistics sector”, commented Kadri Samsunlu, CEO of iGA Istanbul Airport. “We are confident that this new facility will further cement iGA Istanbul Airport’s vision and mission and commitment to being a global hub and gateway to the world.”
New possibilities on the horizon
Sezek says this agreement is significant. “This new facility reinforces the strong commitment to our business and customers in Türkiye and reflects the rapid rise of Istanbul as a strategic cargo connection point for businesses across the globe.”
A tough year for FedEx
Just last month, the US-based company announced that FedEx Freight shipping rates would increase by January next year. Domestic, export, and import services costs will spike by nearly 6%, while shipping rates are set to go up by almost 7%.
ALSO READ: FedEx increases shipping costs by up to 6.9%
Annual rate increases are standard in freight shipping. “These increases happen when carriers need to raise rates across all or specific trade routes due to supply and demand chain changes. Bigger carriers initiate these increases during peak periods,” says Millie Tarallo, chief revenue officer at Dropoff.
Using a regular shipper, you can negotiate the rate with the company. Depending on many factors, you can secure a more favorable term.
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