FedEx South European Gateway Opens Up
In October of 2015 we reported extensively on FedEx’s plans to turn Milan Malpensa Airport into their third largest European handling hub.
The original plan was to have the MXP hub opening as of mid to late last year.
However, fine tuning demands making sure that everything is in working order, and this now seems to be the case with the Milan Malpensa hub now fully online since February 9th.
Three main European hubs now online
FedEx has started to increase their European presence as a means of combatting their main rivals, UPS and DHL.
Until now there were two main European hubs operated by FedEx in Cologne-Bonn and Paris Charles de Gaulle airports. The decision taken in late 2015 to add Milan Malpensa was seen as a necessary move to establish itself firmly in the Italian market as well as having the means to serve the south European market better from there.
FedEx’s hub erection in MXP ties in with the airport operators (SEA) plans to initiate a Euro 100 million extension of the present Malpensa Cargo City.
It is reported that SEA has contributed around Euro 15 million to the costs of the FedEx building.
The U.S. parcels giant is no stranger to the Italian market, having established itself there about thirty years ago. The operation was until today relatively small compared to FedEx’s larger set-ups in CGN and CDG.
David Cunningham, FedEx President and CEO commented at the opening ceremony that “95 percent of all global consumers live outside of the United States. FedEx expands in areas where profitable growth is possible and where open borders exist. In this way our customers can expand into new markets.”
Plenty of space for future expansion
The new facility is spread over a total of 35,000 sqm and is fitted with the latest state-of-the-art handling technology.
There is a new warehouse which offers 15,000 sqm of handling space for parcels and according to FedEx offers a 25 percent higher handling efficiency.
The aim is to handle up to 20,000 shipments daily along with more than 40 weekly flights into and out of Malpensa airport.
On top of this FedEx will offer around 500 weekly truck connections from MXP to destinations throughout Europe.
FedEx has given a lot thought to ensuring that truck movements at the new facility are not hampered by congestion at peak times. The 35,000 sqm area allows for around 20,000 sqm being allocated for truck maneuvering and parking.
There is also 1,000 sqm of office space integrated into the new building.
Network expansion has priority
David Binks, FedEx Express and TNT CEO for Europe is rightly proud of their new hub in Malpensa.
He stated that “the expansion of our business in Malpensa is an important part of our network expansion strategy. We are increasing capacity and at the same time broadening our business connections within Europe.”
He added that FedEx has seen that in Italy alone, the number of people who order online has doubled within the last five years.
FedEx seems to be fully equipped to handle the expected further increase in the area.
John Mc Donagh