FedEx makes second Asia hub in southern China airport
US logistics giant, FedEx, will sign an agreement early next month to make Guangzhou’s Baiyun Airport in southern China its second Asia-Pacific hub, a report said Tuesday.
Citing unnamed sources close to the deal, the Standard newspaper here said the Guangzhou Baiyun Airport Authority would spend up to 1.5 billion yuan (181 million US dollars) to build a warehouse and a runway for the company.
Construction would start in August next year and be completed in October 2008 if the deal is approved by China’s State Council, or cabinet, and its aviation authority.
FedEx’s other hub is at the US military’s former Clark air force base in the Philippines.
In 2004, FedEx signed a framework deal with the Baiyun airport with a view of making it its sole Asia-Pacific hub, but it decided to adopt a dual-hub policy after the Philippines made concessions the keep the logistics company in the country, the newspaper said.
shw/dv China-US-HongKong-air-airport-company
