FedEx sets up 2nd express services base in Beijing
FedEx has set up a second express services facility in Beijing with its long-term China partner DTW Co Ltd.
The new 1,500 sq m facility is located in the Beijing Economic and Technological Development Area, FedEx said in a statement.
‘FedEx-DTW will further contribute to the economic development of Beijing through the new express station,’ Eddy Chan, vice-president of FedEx’s China Division, said.
Earlier in the month, FedEx is reportedly to have signed a framework agreement with Guangzhou Baiyun Airport Authority that may see the express operator switch its Asia-Pacific hub to the Baiyun airport by 2008.
FedEX currently operates its Asia-Pacific hub at Subic Bay in the Philippines, where its lease expires in 2007.
FedEx formed its first venture with DTW in Beijing in 1999 and has expanded rapidly in the country.
FedEx now operates 11 flights to China per week, serving Shenzhen, Shanghai and Beijing, compared to only four flights in 1999 to Shanghai and Beijing only.
It services 221 Chinese cities, up from 144 in 1999, and aims to increase that number to 320 by 2008.
Foreign freight forwarders like FedEx will be allowed to operate wholly-owned subsidiaries in the country by the end of 2005 in accordance with China’s WTO commitments. New regulations that came into force in January allow them to own up to 75% in alliance with a mainland-registered firm.
