FedEx, the world’s largest transportation company, has signed a five-year deal for an airfreight handling facility at Teesside Airport.

FedEx is to relocate its cargo operation from Newcastle Airport to Teesside - bringing eight additional inbound and outbound flights a week.

The company has also recommitted to its existing road operation, currently based in Hangar 1 at the airport, by signing a separate new five-year lease. The new cargo operation is scheduled to begin in June and will be based out of Hangar 3.

The operation will provide capacity for 196,000 lbs of cargo to be transported through the airport each week and will provide increased access to key markets.

Alun Cornish, Managing Director of Ramp and Gateways Operations for Northern Europe for FedEx, said: “Teesside Airport has excellent connections and transport links to the North of England, making it the perfect location for us to better serve our customers in the North East and Yorkshire regions. At FedEx, we are seeing increasing import and export demand to and from the region, so our presence here will enable us to get goods to our customers faster.”

Tees Valley Mayor Ben Houchen said: “It is fantastic to be able to welcome scheduled cargo flights, by FedEx, to Teesside Airport. It’s an incredible development for the airport and one that shows to the world of cargo, the opportunity and possibilities of being located here.

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“We have always said that our cargo operation is key to the long-term success of our airport and this show of confidence from FedEx, one of the world leaders in air freight, shows what we are doing is working.

“This announcement is every bit as important as all the amazing holiday flights we have brought in over the past few years, and with the business park now up and running, we are ahead of schedule and turning things round.”

Teesside International Airport Managing Director Phil Forster added: “This new partnership is a brilliant and significant step into the cargo market, and is a sign of things to come at Teesside Airport.

“We are working tirelessly to make sure our business is sustainable for the long-term and this is another big leap forward.”

The deal follows recent significant investments from the private sector at Teesside Airport, including a £25million investment from Willis Aviation to create a new engineering base, which will create over 200 jobs.

The first unit of the £200million Business Park South has been built alongside the link road connecting the development to the A67. The southside business park will ultimately create 4,400 jobs when fully operational.

Construction of Hangar 4 is also continuing on Business Park North. The new facility will be the base for aircraft paint company Airbourne Colours, which is making a £6.5million investment.