en.Wedoany.com Reported - FedEx Corp. is investing $54 million to expand a major truck freight terminal in the Netherlands. The move aims to support European logistics customers, aligning with the company's new strategic focus on international high-end air cargo services while seeking growth in the premium parcel and freight market.
The express delivery company announced last week that it will purchase and develop land adjacent to its road hub in Duiven, Netherlands, to increase capacity and improve service reliability across its European road network. The expansion will boost palletized freight handling capacity by more than 50% and add 65 new loading doors, bringing the total on-site loading positions to 265. This will allow more freight shipments to be delivered directly from FedEx (NYSE: FDX) customers without needing to transit through intermediate consolidation centers.
The importance of FedEx's European truck network has grown following its recent restructuring of the air network into two divisions: express parcels and slower freight. The restructuring aims to maximize aircraft belly space utilization and ground sorting efficiency. Some of FedEx's airlines now operate international daytime flight schedules, carrying heavy cargo that does not require the highest speed. This enables the road and air networks to integrate under a truck-plane-truck delivery model, achieving higher operational efficiency than full air transport.
Management describes this slower air network as an extension of its European and U.S. less-than-truckload (LTL) networks, targeting high-yield goods such as pharmaceuticals, perishables, electronics, and automotive parts. These types of cargo generate higher profit per pound than heavier general freight. Although FedEx does not operate a true LTL network—especially after spinning off its FedEx Freight subsidiary on Monday—it still uses FedEx tractor-trailers to transport cargo with LTL characteristics, delivering air freight to industrial customers.
Since 2024, FedEx has prioritized capturing a larger share of the $90 billion slower air freight market, particularly in the premium segment. The addressable market for high-end air cargo is $22 billion, and FedEx says it currently holds a 12% market share.
Safia Ladhari, Managing Director of FedEx Network Operations, said in a press release that the European road network plays a key role in supporting this strategic vision. It enables the company to efficiently transport intercontinental air freight across Europe by road, complementing air operations. This integrated model is a critical component of the company's highly competitive freight service, offering customers a highly reliable and cost-effective solution.
FedEx stated that the first phase of the expansion will focus on the basic requirements for operating the facility. Subsequent phases will focus on improving operational efficiency, including through connections between the new and existing buildings. Ladhari explained that over the past year, the Duiven facility has experienced strong growth in parcel and freight volumes, especially during the peak year-end period. This expansion will ensure the company is well-positioned to support its customers' continued growth.
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