EU fetches largest business for Fedex India unit

European Union (EU) has replaced US as the biggest market for outbound traffic from India for Fedex Corp, the worlds largest express transportation company. EU now accounts for 27 per cent of Fedex Corps total outbound business from India while the US has slipped to 23 per cent. Earlier, the US shares was 27 per cent while EU was 23 per cent. Federal Express handles a diverse portfolio from India including a large share of garments, engineering goods and auto components which are shipped to the EU and US. The portfolio of shipments include electronics, pharma, chemicals and leather, Mr Jacques Creeten, managing director Indian subcontinent, FedEx told FE. “From north India, handicrafts, carpets, jewellery and sports goods are some of the major shipments”, he said. Globally the air cargo industry is likely to record a growth of around 6 per cent, while in India it will grow by 10 to 15 per cent, he said. As part of its five-point strategy to grow, FedEx is deploying an MD-11 aircraft to fly five days in a week from Mumbai increasing the capacity to 87 tonnes from 37 tonnes from October. The company had deployed an Airbus A310. The flight links Mumbai to Dubai which is the regional hub, and from Dubai to Paris, the hub for FedEx in Europe. FedEx snapped ties with Blue Dart recently as the company was not able to keep the ground handling of cargo for domestic and international operations separately, said Mr Creeten. “We have signed a new operations agreement with Prakash Airfreight Ltd which will provide pick-up and delivery services. We have also tied up with Jeena & Co to provide nationwide customs clearing services”, he added. “We will provide customs clearance from all major international airports in the country from October”, he said. The company is expanding its operational presence to most commercial key centres that represent 85 per cent of the express transportation market. In addition, access to FedEx range of services will now be made easier through 100 retail locations across the country and an additional 36 branded locations. After the expansion, FedEx will be present in Delhi, Mumbai, Chennai, Bangalore, Coimbatore, Kolkata, Ahmedabad and Hyderabad from the earlier existing four centres.

Copyright 2002 The Indian Express Online Media Ltd.. Source: Financial Times Information Limited.