FedEx Starts Building Third European Hub

Federal Express (FedEx), the Memphis based “parcels by air” giant continues to try and place itself firmer into the European air cargo market.
DHL and UPS are traditionally stronger in Europe, but FedEx plans its third hub on the continent with a new base in Milan’s Malpensa airport.

FedEx’s Boeing 767 freighters will be frequent guests at MXP  -  credit FedEx
FedEx’s Boeing 767 freighters will be frequent guests at MXP - credit FedEx

Construction of a brand new logistics hub has already started and is planned to be in full operation as of mid 2016, or even earlier.
The U.S. cargo giant which has a combined fleet of more than 360 aircraft, is no stranger to Milan Malpensa.
They have a relatively small operation there but see the potential for future expansion of services and flights as being of utmost importance in the European arena.

Tripling of capacity
The FedEx project is part of a EUR100 million expansion of the Malpensa Cargo City which has been initiated by SEA, the airport operator.
The FedEx building is expected to cost around EUR15 million and will feature state-of-the-art equipment which will effectively triple FedEx’s handling capacity at the north Italian airport.
The new facility will have more than 35,000sqm of space which includes a 15,000sqm fully covered warehouse, 1,000sqm of office space and 20,000sqm for the maneuvering of trucks as well as parking space.

Cargo is top issue at MXP
When completed, Milan Malpensa will become FedEx’s third hub in Europe after Paris CDG and Cologne/Bonn airports.
FedEx Milan will then be in a position to handle over 20,000 daily shipments, handle 44 weekly flights and offer almost 500 weekly truck connections throughout Europe.

The Milan airport management has continued with success down the road of expanding the cargo facilities at Malpensa.
This was seen as a necessary step some years back in order to protect their position as a cargo airport and meet expansion plans of carriers operating there.

EC set to give green light for TNT takeover
It is expected that the European Commission will now give FedEx the green light for the EUR 4.4 billion takeover of TNT Express as the deadline for any objections passed last Friday (23. October). Both TNT and FedEx were informed last week that there have been no objections registered.
The way is now open to close the deal which is expected to happen in the first half of 2016.
This will ensure that both companies, once together, will control up to 17% of the European express market. DHL will remain on top but FedEx/TNT will push UPS into third place.

John Mc Donagh

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