San Francisco International Airport (SFO) is moving forward with a major modernisation of its cargo infrastructure through an investment exceeding USD 300 million, with a new highly automated cargo terminal expected to enhance handling capacity, operational efficiency and supply chain connectivity by 2028.
The development represents a significant step in SFO’s long-term strategy to reinforce its position as one of the United States’ leading air cargo gateways on the West Coast, responding to rising demand driven by e-commerce growth, evolving global trade flows and increasing requirements for faster cargo processing.
As part of the project, SFO has selected Lödige Industries to supply advanced automated cargo handling technology for the new facility. The system will integrate automated storage and retrieval solutions designed to optimise cargo movement, improve throughput and support high-volume operations.
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Advanced Automation to Transform Cargo Handling
The new two-storey cargo terminal will span approximately 310,000 square feet and will incorporate next-generation technologies aimed at improving efficiency across the entire cargo handling process. Construction is scheduled for completion in spring 2028, with commercial operations expected to commence later the same year.
Samuel Chui, Project Manager at San Francisco International Airport, said the investment reflects the airport’s commitment to providing modern infrastructure capable of meeting the future needs of airlines, freight forwarders and logistics partners.
“This investment demonstrates SFO’s commitment to delivering advanced and efficient cargo facilities that support our airline customers and contribute to the continued growth of the regional economy,” Chui said.
At the heart of the terminal’s automation strategy will be three Elevating Transfer Vehicles (ETVs)—rail-guided systems capable of moving Unit Load Devices (ULDs) both vertically and horizontally simultaneously. The technology will enable faster storage, retrieval and transfer of cargo throughout the facility, helping to streamline workflows and reduce processing times.
Lödige Industries Brings Advanced Cargo Technology to SFO
According to Lödige Industries, the automated solution has been engineered to provide scalability, allowing the facility to accommodate future cargo growth while delivering enhanced digital integration across terminal operations.
Jonathan Hardy, Managing Director North America at Lödige Industries, said the new facility will place SFO among the most technologically advanced cargo hubs on the West Coast.
“The cutting-edge cargo terminal positions SFO at the forefront of West Coast air cargo logistics. Our automated systems are designed for maximum efficiency and scalability, enabling the airport to manage increasing cargo volumes while benefiting from advanced automation and digital connectivity,” Hardy said.
He added that rising e-commerce volumes and changing global trade dynamics are accelerating investments in automated cargo infrastructure across major North American airports.
“Lödige Industries remains committed to supporting airports as a strategic technology partner as the industry evolves. The SFO project represents another significant milestone in our North American expansion, building on ongoing developments at New York John F. Kennedy International Airport and Toronto Pearson International Airport,” he said.
Strengthening North America’s Future Cargo Infrastructure
The SFO expansion reflects a broader industry movement toward automation, digitalisation and smarter cargo facilities as airports seek to increase throughput while reducing operational complexity.
Lödige Industries has been active in the United States logistics market since 1985 through its subsidiary Lödige USA Inc. The company has implemented automated cargo solutions at several major aviation facilities, including projects for John F. Kennedy International Airport, Korean Air cargo facilities in Los Angeles and American Airlines operations in Dallas.
Headquartered in Germany and founded in 1948, Lödige Industries specialises in automated material handling systems, air cargo terminal technologies, warehouse logistics solutions and lift systems. The company reported revenues of EUR 246 million in 2025 and employs approximately 1,500 people globally.
Once operational, SFO’s new automated cargo terminal is expected to significantly increase processing efficiency and capacity, positioning the airport to accommodate future growth in international trade, e-commerce shipments and time-sensitive freight movements.
