IN Brief:
- San Francisco International Airport is investing more than $300m in a new automated cargo terminal.
- The 310,000ft² facility is scheduled to open in 2028.
- Lödige Industries will supply automated storage and retrieval systems, including rail-guided elevating transfer vehicles for ULDs.
San Francisco International Airport is investing more than $300m in a new automated cargo terminal designed to increase capacity and improve air freight handling efficiency on the US West Coast.
The 310,000ft² facility is scheduled for completion in spring 2028, with operations expected to begin later that year. Lödige Industries has been selected to equip the terminal with automated storage, retrieval, and high-throughput cargo handling systems. The core system will include three rail-guided elevating transfer vehicles for unit load devices.
The two-storey terminal is designed to move ULDs vertically and horizontally at the same time, improving storage and retrieval speed while reducing turnaround times. The project is intended to support rising ecommerce and trade volumes while strengthening SFO’s position as a major air cargo gateway.
Airport cargo infrastructure is being pulled into the same automation cycle already reshaping warehouses and distribution centres. Air cargo terminals have to manage time-sensitive freight, airline schedules, trucking interfaces, customs processes, security requirements, and constrained airport real estate. Fragmented storage and manual movement can become limiting factors when volume, dwell-time pressure, and customer expectations rise together.
ULD management is one of the most important pressure points. Air cargo moves through a sequence of build-up, storage, flight loading, arrival, breakdown, and handover. Delay or congestion at the terminal can affect aircraft turnaround, truck appointment windows, customs release, and onward distribution. Automated storage and retrieval gives the terminal a more controlled way to hold, locate, sequence, and retrieve ULDs.
The choice of Lödige reflects the specialised nature of the work. Air cargo automation differs from parcel sortation or retail fulfilment automation because the loads are larger, heavier, regulated, and closely tied to aircraft operations. Systems must integrate with cargo handling processes, safety rules, building constraints, and airport operating schedules. Reliability is critical because terminal disruption can spread quickly across airline and forwarder networks.
The project also reinforces the role of West Coast gateways in US trade and ecommerce. International inbound flows, technology cargo, healthcare goods, perishables, express freight, and cross-border ecommerce all place pressure on airports close to major consumer and business markets. San Francisco operates in a competitive cargo environment, and additional automated capacity gives it a stronger case for high-value and time-sensitive freight.
Automation in cargo terminals also addresses land and labour constraints. Airports have limited space for expansion, with cargo facilities competing against passenger infrastructure, aircraft stands, road access, and support functions. A high-density automated terminal can raise operational capacity without requiring a proportional increase in footprint or manual equipment movement.
The same approach is visible across distribution networks. Nestlé’s automated California distribution centre links AS/RS capability with renewable electricity and food logistics capacity, while Burlington’s Georgia mega-DC uses automation, sortation, workstations, and custom software to manage retail volume. SFO is applying comparable automation principles to air cargo, where schedules are tighter and the cargo handling interface is more regulated.
The terminal also points to a broader change in cargo facility design. Automated cargo sheds are becoming data-rich industrial assets rather than simple transfer buildings. Systems need to know where cargo is, where it should move next, which flight or truck it is tied to, what handling conditions apply, and whether it is cleared for release. Digital connectivity is therefore part of cargo terminal productivity.
Forwarders and airlines will look for faster availability, more predictable handover, and less congestion. The airport gains a stronger long-term cargo proposition and infrastructure capable of handling growth without relying only on more people, more yard space, or longer dwell times.
The project will still depend on integration beyond the automated system itself. The terminal has to work with airline procedures, truck docks, freight forwarders, security screening, customs requirements, and airport operations. Technology can increase throughput, but only when the surrounding process is equally disciplined.
SFO’s investment places automation firmly inside air cargo infrastructure strategy. West Coast cargo markets will continue to face pressure from ecommerce growth, trade volatility, and service expectations. Airports that can handle cargo quickly, safely, and predictably will be better placed as customers look beyond headline capacity.
