Tag: FedEx

FedEx buys out local franchisee for USD30 mn

Posted by | Nov 3, 2006 | |

This marks the direct entry of the USD33 billion FedEx, which has nearly 275,000 employees and 670 aircraft worldwide.Mumbai-based Prakash Air Freight Pvt Ltd, a privately held company, is one of the largest domestic companies in the industry with 384 offices serving nearly 4,400 destinations.

The two key promoters of Prakash Air Freight Pvt Ltd, Rajan K Manchanda and Vijay Narang, could not be reached for comments on their decision to cash out.FedEx applied to the Foreign Investment Promotion Board about two weeks ago for permission to undertake the acquisition.

After 22 years of operating in India through a franchisee, FedEx Corporation, the world’s largest express transportation company, has decided to acquire Prakash Air Freight Pvt Ltd, its sole franchisee in the country, for USD30 million in cash.

Sources said the deal, subject to the usual mandatory approvals, could be concluded in two weeks.

This acquisition comes close on the heels of TNT NV acquiring the Secunderabad-based road express company Speedage Express Cargo Services from Associated Road Carriers India for an undisclosed amount in September. Speedage posted a turnover of Ï17 million in 2005-06 (nearly Rs 100 crore).

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Delivering needed cash; UPS, FedEx and DHL ship packages all over the world.

Posted by | Nov 1, 2006 | |

As logistics giants FedEx, UPS and DHL battle for small business clients, they are rolling out services that have little to do with hauling packages from Point A to Point Z.

FedEx, for instance, has quietly become the nation’s second-largest producer of signs and banners, and it’s about to unveil a service aimed at helping entrepreneurs get into the direct-mail marketing industry. DHL has launched a small-business magazine and is funding micro-enterprise efforts such as Mays’. And UPS has become one of the top providers of Small Business Administration-backed loans in the country.

There’s no secret why the trio, which built their reputations in corporate mailrooms, are increasingly wooing mom-and-pop shops. Of the 23 million businesses in the country, 98 percent are small enterprises, according to the SBA. And 97 percent of all exporters are small ventures.

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Distribution remains a challenge in China. Is there hope?

Posted by | Oct 30, 2006 | |

Distribution remains a challenge for foreign companies in China, but recent developments offer hope.

Moving goods around China, long a bugbear of foreign companies operating in the country, is getting easier. This is thanks to rapidly improving infrastructure and a number of key regulatory changes allowing foreign freight-forwarders to set up 100%-owned ventures and foreign companies in most sectors to operate their own distribution arms.

For specialist logistics businesses, the big change came at the end of 2005, when freight-forwarders were allowed, as agreed under the terms of China’s World Trade Organisation (WTO) accession agreement, to set up wholly foreign-owned operations. For other companies, particularly manufacturers, the introduction in 2004 of a whole new category of business—the foreign-invested commercial enterprise (FICE)—gave foreign enterprises the right for the first time to establish both wholesale and retail businesses.

A subsequent relaxation of the rules that came into effect in March this year allows local rather than central commercial authorities to approve most FICE applications. This has led to a major fall in processing time, and a huge surge in approvals. In Shanghai, the country’s biggest commercial centre, the 600-plus FICEs established in the first half of 2006 outnumbered the entire total for 2005. While various restrictions remain on FICEs’ freedom to operate, particularly on the number of outlets a company can operate in any one region, there are now no geographical limits on where a company can set up such businesses.

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New FedEX facility speeds delivery

Posted by | Oct 27, 2006 | |

Global transport and logistics company FedEx has moved into a new facility at the airport, which promises to speed up delivery times and make room for the future possibility of company aircraft flying directly into Brisbane.

The purpose-built, AUD3.5 million facility is close to the runway in Export Park, Qantas Dr, and more than doubles FedEx’s capacity for air express freight in Brisbane.

The 7850sq m facility provides more than 2000sq m of warehouse and distribution space, making it more than twice the size of its former facility in Herston and with sufficient land for future expansion.

It is now FedEx’s largest facility in Queensland, including a number of specially designed features to enable faster cargo clearance and provide Brisbane with closer and faster access to world trade.

FedEx regional vice-president South Pacific, David Ross, who visited Brisbane this week for the official opening, said he remembered approaching the Brisbane Airport Corporation just 16 months ago about building a facility and now it was up and running.
“Brisbane is one of the key centres for growth which is why we are investing in this facility”

FedEx has acquired a 10-year lease with a five-year option of the BAC land for the facility.

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FedEx Ground VP dies

Posted by | Oct 24, 2006 | |

Bram Johnson, a key member of FedEx Ground’s executive team, died at the age of 59 on Friday of natural causes while hiking with friends in Spain.

Johnson was one of two executive vice presidents at FedEx Ground, based in Moon Township, and a direct report to president and CEO Daniel Sullivan. As the company’s first vice president of marketing, he helped to found Roadway Package System, the predecessor to FedEx Ground.

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