The Ontario International Airport Authority (OIAA) has given the green light to a lease agreement with FedEx Express that allows the courier delivery services firm to continue operations at Ontario International Airport (ONT) in the US.

The new lease agreement will be valid for at least 30 years.

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It will enable FedEx’s subsidiary FedEx Express to transfer its operations to a 51.1-acre site in the northwest quadrant of ONT.

The agreement comprises two ten-year options exercisable by FedEx, with the potential to extend the agreement to 50 years.

“The transfer of ONT to local control in 2016 has enabled us to transform the airport into an economic engine for the Inland Empire.”

The relocation is scheduled to be completed by 2020 once site preparations conclude.

OIAA president Alan Wapner said that the new FedEx agreement comes at an important time for ONT, which has experienced increases in cargo volumes of up to 20% a month.

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Wapner added: “The transfer of ONT to local control in 2016 has enabled us to transform the airport into an economic engine for the Inland Empire.”

“In addition to adding exciting new domestic and international airline service, we have made strong and steady gains in cargo operations, which bodes well for the airport’s economic development potential.”

FedEx Express has set aside approximately $100m to renovate aircraft parking apron areas. It will also use the funds to consolidate and build a sorting facility, ground support staging area, and secondary and maintenance buildings, as well as enhancing perimeter fencing.

The company expects to complete these improvement works by November 2020.

Pursuant to the agreement, the OIAA will remove existing structures above and below ground and complete surface grading at the northwest site.

Site preparations are expected to be completed by January next year.

FedEx Express, which is currently occupying 18.5 acres on ONT’s south side, has been operating at the airport for 31 years.