FedEx Express to build $100m Shanghai hub
FedEx Express has inked a deal with the Shanghai Airport (Group) Co. Ltd. to establish a $100 million logistics hub at Shanghai Pudong International Airport. The facility, which will offer onsite Customs clearance and will enable FedEx to process up to 36,000 documents and packages per hour, is slated to open in early 2017.
In a press release, FedEx Express said Shanghai airport — which is projected to surpass Hong Kong International Airport as the world’s top airfreight hub by 2015 — is a strategic location for the company. The eastern Chinese city’s GDP has surged by more than 8 percent over the past three years and Shanghai’s foreign trade volumes recorded double-digit growth in both 2011 and 2010.
FedEx officials said the new hub will help address increased demand for freight services, especially between eastern China and the U.S. and Europe. “By expanding our infrastructure in Shanghai, we will be equipped to handle increased volumes in Asia and ultimately provide our customers with greater and more reliable access to the markets in which they do business,” Michael Ducker, chief operating officer and president, international, of FedEx Express, said in a statement.
“Customers now have more global trade opportunities than ever before, and demand for FedEx shipping services, both to and from China, is expected to increase,” he added.
Heightened demand for freight services out of China also led FedEx Express to launch additional Boeing 777F routes from Guangzhou and Shanghai to Europe. According to the press release, the logistics provider now operates seven 777F routes connecting Asia to the U.S. and Europe.