FedEx expands Asia-Pacific hub with South China Operations Center

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FedEx expands Asia-Pacific hub with South China Operations Center
  • FedEx Express is expanding its Guangzhou Gateway by establishing a new South China Operations Center at its Asia Pacific Hub in Guangzhou Baiyun International Airport
  • The new operations center will be more than double the size of the current Guangzhou Gateway and is planned to become operational in 2027
  • The facility will connect outbound shipments from customers in southern China with FedEx international network through the Asia Pacific Hub

FedEx Express is expanding its Guangzhou Gateway by establishing a new South China Operations Center at its Asia Pacific Hub in Guangzhou Baiyun International Airport.

The new operations center will cover an area of over 41,000 square meters, more than double the size of the current Guangzhou Gateway, and is planned to become operational in 2027, the company said in a statement.

FedEx signed the agreement to expand the Guangzhou Gateway with Guangdong Airport Authority Logistics Company.

The FedEx South China Operations Center will connect outbound shipments from customers in southern China with FedEx international network through the Asia Pacific Hub, FedEx said in a statement.

It will receive and process inbound shipments arriving at the hub for delivery to local customers. The center will include offices, state-of-the-art sorting systems, operations areas, and a warehouse. It will be able to sort up to 25,000 packages and documents per hour, three times the sorting efficiency of the current facility. FedEx said it will also integrate frontier technology and sustainability into the facility’s design to provide an eco-friendly working environment.

“We continue to expand our network and service offerings to cater to the growing needs of our customers in the AMEA region and enhance their connections to global markets,” FedEx Express Asia Pacific, Middle East, and Africa president Kawal Preet said.

Preet explained: “China is integral to our regional and global network. Our investment in the South China Operations Center will support our long-term growth in a region with high economic potential. Guangzhou sits within the Greater Bay Area of the Pearl River Delta which includes Shenzhen and Hong Kong. It is a region that is taking proactive steps to integrate against a blueprint that will further strengthen its position as a global economic powerhouse.”

FedEx’s Asia Pacific Hub at Guangzhou Baiyun International Airport, one of the main FedEx gateways in China, connects Asian customers to FedEx US and North American network through Anchorage and Memphis (USA), and the European network through Paris (France) and Cologne (Germany). Currently, the FedEx Asia Pacific Hub operates more than 210 flights per week, while the FedEx Guangzhou Gateway handles approximately 40% of the hub’s import and export cargo volume.

In 2021, Guangzhou, the capital city of Guangdong province saw its total import and export foreign trade volume exceed by 1.08 trillion yuan1 (US$159.58 billion).

FedEx noted that one of the reasons for the region’s success is the productivity of its small- and medium-sized enterprises (SME) whose output value grew by 11.9% year-on-year. FedEx said its new South China Operations Centre will become an important component in the local SME ecosystem helping to fuel further growth.

Last year, FedEx introduced six new intercontinental flights originating from Asia Pacific, contributing additional capacity of almost 2,700 tons (2.690 million kgs) in and out of APAC to the U.S. and Europe.

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