FedEx Express to build $100m hub facility in Shanghai

FedEx Express is to establish a new $100m international express and cargo hub at Shanghai Pudong International Airport, China. The company said yesterday that it has inked a deal with the Shanghai Airport Group that should see a facility, complete with a designated onsite clearance capability, up and running in early 2017.

FedEx said Shanghai was set to become the world’s top air cargo hub by 2015, with the airport recently receiving the green light for an expansion programme that will add 5m tons of annual freight handling capacity by 2020.

The city itself is also a key market for FedEx, with its foreign trade increasing by 18% last year.

The Memphis-based integrator said its planned new hub would support growth in international trade, particularly between eastern China and the United States and Europe.

The new facility will more than triple the current FedEx facility in Shanghai. It will offer a capacity to process up to 36,000 documents and parcels each hour.


Michael Ducker, the international chief operating officer and president for Fedex Express, said demand from customers for shipping to and from China was expected to increase.

“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,” he said.

FedEx currently serves Shanghai with 68 flights each week, inbound and outbound, with several direct flights between Shanghai, the US and Europe.

A new Boeing 777 Freighter was launched this summer flying from Guangzhou and Changhai in China to Europe.

The new hub forms part of an ongoing expansion in the company’s operations within the Asia Pacific region.

“Providing our customers with the connectivity they need is one of our top priorities and through the new hub in Shanghai, we will be able to meet the supply chain needs of our customers around the world.”

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