Kuehne+Nagel moves into new cargo facility at Birmingham airport

Logistics giant Kuehne+Nagel has established a new home base at Birmingham Shuttlesworth International Airport (BHM), facilitating the management of its weekly chartered freight flights from Stuttgart, Germany, initiated last year.

The Birmingham Airport Authority last week celebrated the opening of a 53,000-square-foot facility with warehouse space and administrative offices, 17 dock doors for trucks, and five airside bays. It marks the airport’s first dedicated terminal for general cargo, highlighting a new focus on attracting cargo business.

The project took a year to complete and cost $28.4 million—exceeding the original estimate of $27 million—not including design work. Kuehne+Nagel (CXE: KNIN) is leasing the building for an initial period of six years. It temporarily operated out of an existing hangar subleased from another BHM tenant since launching service in April 2023 from Stuttgart to meet the demand from companies in the automotive, aerospace, and pharmaceutical industries with business in the Southeast. Mercedes-Benz has an SUV assembly plant about 34 miles from Birmingham and a nearby lithium-ion battery factory.

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Atlas Air operates dedicated Boeing 747 cargo flights for Kuehne+Nagel, with rotations through Chicago O’Hare airport on return trips to Germany. Alliance Ground International handles ramp services and cargo processing.

According to Birmingham Airport Authority spokeswoman Kim Hunt, Kuehne+Nagel has reduced its service frequency from twice-weekly last year to once per week and no longer collaborates with Cargolux alongside Atlas Air.

Previously, Kuehne+Nagel routed Mercedes shipments via Hartsfield-Jackson Atlanta International Airport. Birmingham Shuttlesworth International Airport (BHM), closer to the Mercedes plant, now offers faster transit and greater flexibility. The lease of a cargo terminal at BHM underscores a trend among freight forwarders to shift operations to secondary airports, driven by operational constraints, congestion, and higher costs at major passenger-focused airports.

“This facility reflects extensive effort and a firm belief that Birmingham should play a pivotal role in regional cargo movement,” stated Ronald Mathieu, president and CEO of the Birmingham Airport Authority, in a press release.