U.S. express delivery service giant FedEx Express announced it will establish a $100-million express and cargo hub in Shanghai to expand its network throughout the Asia-Pacific region.
The Tennessee-based company, a subsidiary of FedEx Corp., said on October 25 that it signed a deal with Shanghai Airport (Group) Company Limited to build the new facility at Shanghai’s Pudong International Airport.
Once completed in early 2017, the logistics hub is expected to more than triple the capacity of the current FedEx facility in Shanghai, allowing it to process up to 36,000 documents and parcels per hour. It will have a designated on-site customs clearance.
“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,” said Michael Ducker, chief operating officer and president, international, of FedEx Express.
Building the new hub at Pudong International Airport is a strategic move, the company said. The airport is expected to become the world’s top air cargo hub by 2015, and recently received approval for an expansion project that will increase its freight handling capacity to five million tons annually by 2020.
