The corrected release reads:
FedEx Expands Leadership in Asia Pacific with Plan to Build Region's Largest Air Cargo Hub in Guangzhou, China; Direct economic benefit to Chinese economy forecast to reach $63 billion by 2020
FedEx Express (FedEx), a subsidiary of FedEx Corp. (NYSE:FDX), announced today plans to build a new Asia Pacific hub at the Guangzhou Baiyun International Airport in Southern China to better serve its global customers doing business in and with the fast-growing China and Asia Pacific markets.
The new FedEx Asia Pacific hub will commence operations in December 2008 at which time the existing hub in Subic Bay, Philippines, will close.
"More than two decades ago, we envisioned China as a nexus of global supply and demand and as a result became the first express carrier to enter the market," said Frederick W. Smith, chairman and chief executive officer, FedEx Corporation. "Today, with the announcement of our planned Guangzhou hub - the largest in Asia Pacific - we further invest in our leadership position by creating a new gateway that expands our customers' access to the global marketplace."
The Guangzhou facility - representing a $150 million dollar capital investment by FedEx - will have a total floor space of 82,000 square meters located on 63 hectares (155 acres). The hub will provide employment for 1,200 people at start-up and be capable of sorting up to 24,000 packages per hour, double the capacity of the current facility in Subic Bay. This hub is expected to assume and expand the current activities of the existing hub in the Philippines, beginning in December 2008.
FedEx based its plan to develop the new hub on several factors including an exhaustive series of feasibility studies which forecasted manufacturing and trading trends, both within Asia and internationally, for the next 30 years.
"We believe this hub will stimulate business both in Southern China and globally," said David L. Cunningham Jr., senior vice president, FedEx Express Asia Pacific. "Locally, a superior time-definite express service will attract high-value industries that require the speed, reliability and global access that FedEx provides."
A joint study by China's Development Research Commission and Campbell-Hill Aviation Group of the United States estimated that the direct output impact of a FedEx hub on China's economy is $11 billion in 2010, increasing to $63 billion by 2020 with the majority resulting from industrial expansion.
According to recent forecasts(1), transportation within Asia remains the world's fastest growing regional air freight market and is expected to grow each year at 8.5 percent until 2023. China will remain a key factor in that growth due in large part to increasing traffic in semi-finished manufactured goods and steadily rising consumption within China. Air freight from China to the U.S. is expected to grow at an average of 9.6 percent a year over the next 20 years, while traffic to Europe is predicted to grow almost as quickly at 9.3 percent over the same period.
The planned new hub will also allow FedEx to significantly improve service levels for locations in China.
FedEx will continue to maintain its presence in the Philippines, where Manila and Cebu will remain integral parts of the FedEx AsiaOne(R) network. The company is currently in the process of developing a regional center and expanding an operations gateway in Manila. We will be providing back-office functions as part of a regional strategy to provide continuous quality improvement by centralizing certain services.
About FedEx Corporation
FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $29 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 250,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit fedex.com.
About FedEx Express
FedEx Express, a subsidiary of FedEx Corp., connects areas that generate 90% of the world's gross domestic product in one to three business days with door-to-door, customs-cleared service and a money-back guarantee. The company's unmatched air route authorities and infrastructure make it the world's largest express transportation company, providing fast, reliable and time-definite transportation of approximately 3.3 million packages to more than 220 countries and territories each working day. FedEx Express employs more than 139,000 employees and has over 50,000 drop-off locations, 670 aircraft and approximately 40,000 motorized vehicles in its integrated global network.
Note to Editor: FedEx Express press releases are available on the World Wide Web at http://www.fedex.com
(1) BOEING World Air Cargo Forecast 2004-2005