FedEx Express has signed an agreement to build a new package facility at Istanbul Airport, which will be completed in November next year.
The US firm currently utilises a shared location at Istanbul Airport.
With the new facility, FedEx aims to strengthen its presence at the airport by offering greater reliability by having full control and more than doubling its presence at the airport to an area of more than 25,300 sq m.
The facility will have three parking areas for FedEx aircraft, space for 32 vans and seven docks for trucks, and will use the latest sorting technology with the capacity to process 3,000 pieces per hour.
The facility is also designed with separate parcel and freight processing, benefiting companies that want to bundle both types of shipping into a single network, “a unique feature of FedEx’s value proposition in Europe,” according to the company.
Processing packages and merchandise separately also creates operational efficiencies, including reducing forklift movements, the company explained.
“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 intercontinentally,” said Eser Sezek, FedEx Express vice president operations for southeast Europe, Israel and Turkey.
“It also demonstrates our strong and continued commitment to our business and our customers.”
Overall, FedEx has had a challenging year. In April, the company unveiled plans to consolidate its various divisions as part of efforts to generate cost savings of $4bn.
In June, FedEx also said it would ground more aircraft after both revenues and operating income declined during its fiscal fourth quarter of the year due to “demand weakness and cost inflation”.