Asia Pacific (English)

FedEx Opens New Adelaide Gateway to Support Surging Air Freight Demand out of South Australia

FedEx Express is expanding operations to help South Australia’s SMEs and freight needs

FedEx Adelaide Facility.jpg

Adelaide, 19 May 2023 – FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX), one of the world’s largest express transportation companies, announced the launch of its new FedEx Adelaide South Australian gateway to support the surging air freight demand out of South Australia. Adjacent to the Adelaide Airport, the new facility forms part of the planned freight and logistics hub for Adelaide Airport East Precinct, and features enhanced sorting and storage capabilities, supported by state-of-the-art technology. The new FedEx Adelaide South Australian gateway spans approximately 64,000 square metres, more than double the size of the previous facilities combined and is equipped with 435-metre conveyor belts and an advanced automated sortation system that can sort up to 10,000 packages per hour, four times the previous sorting capacity.

The new facility also offers more than 300 per cent increase in package sorting volume and enables selected one-day delivery services to be extended to homes and business in 130 additional postcodes across metropolitan and regional South Australia. Locations enjoying faster delivery times include the Barossa Valley, Adelaide Hills, and Fleurieu Peninsula regions.

Air freight volume in Adelaide is expected to more than double over the next 20 years, rising from 58,500 tonnes annually to 146,000 tonnes in 2039[1]. Between 2020 and 2050, it is anticipated that the volume of wider Australian air freight will increase by over 103%, rising from roughly 290 million tonne kilometres in 2020 to roughly 589 million tonne kilometres in 2050.[2].

The new facility helps to support broader long-term economic benefits for South Australia. Currently, with 25 weekly flights into and out of Adelaide Airport carrying FedEx Express cargo, the new facility provides importers and exporters including small- and medium-enterprises (SMEs) and heavy-weight shippers with greater and more reliable access to other cities within Australia and between international markets.

“This gateway is now the largest single express freight sorting facility in South Australia and the first to respond to major freight upgrades at the Adelaide Airport. The enhanced capabilities of the new facility will benefit local businesses looking to tap into the international marketplace and supports the growing demand for e-commerce in the South Australia region,” said Peter Langley, Vice President, FedEx Express Australasia. “We’re very proud to launch the new facility during the same year of our 50th birthday. This is a testament of our commitment to look at new and innovative ways to serve our customers more efficiently and adopt practices to help reduce carbon emissions from our operations.”

In support of the FedEx Corp. goal of carbon neural global operations by 2040, the new gateway has incorporated multi-faceted features from lighting to water recycling. The facility building is illuminated by a 4,500 square meter skylight to increase the amount of natural light and uses 100% LED lighting to save more than 50% kW per year versus traditional lighting. It also collects and reuses rainwater on site. Equivalent to a 4-star environmental Australian rating, the facility is also equipped with EV charging provisions and scalability.

As SMEs and businesses evolve to meet the current economic climate and navigate customer sentiment, FedEx is driving efficiencies through significant investments like this gateway to help the company’s customers retain and gain market share by providing the best possible last-mile experience for their customers.

[1] Adelaide Airport Master Plan
[2] Australian aggregate freight forecasts – 2022 update