FEDEX Express, a subsidiary of Federal Express Corp., said on Tuesday its global operations would escape disruption and discontinuity when its Asia-Pacific hub opens in China next year since it intends to maintain its Philippine facility until the move is complete.
FedEx, the second-largest US-based package-shipping firm, said it is now testing its new hub at Guangzhou Baiyun International Airport. The facility in southern China would start operations next year.
“There will be no service impact to FedEx global customers as a result of the revised operating schedule, as the current Asia-Pacific Hub located in Subic Bay will continue operations,” the company said.
The company earlier said it would cease the Philippine operations in Subic Bay at the end of the year, or at the same time the operations in China would start.
With the latest development, FedEx extended its Philippine operations toward the first half of 2009.
“The revised operations date provides FedEx with the necessary time to fully test all systems and processes, as well as work closely with the Guangzhou authorities to ensure all necessary approvals are in place,” the company said in a statement
Over the past several months, progress has been made in construction, laying down of various information-technology infrastructure, employee training, and the installation of the hub’s unique package and sorting system of 16 high-speed sorting lines, seven round-out conveyer belts, as well as a total of 90 primary and secondary document-sorting splits, it added.
This will enable FedEx to sort up to 24,000 packages an hour at the start of operations.
“Since we announced plans for a new FedEx Asia-Pacific hub in Guangzhou in 2005, we have achieved many important milestones toward our vision of delivering growth while providing our customers with expanded access to the global marketplace,” said David Cunningham Jr., president Asia-Pacific, FedEx.
“As the largest FedEx hub outside of the US, it will help stimulate business both in southern China and globally, and will enable us to meet the growing demands for air express services in the region over the next three decades,” Cunningham added. The new hub features its own ramp control tower—a first for an international air express cargo company facility in China.
Operations testing has begun, which includes the Hong Kong/Guangzhou cross-border transportation processes, sort systems and flight operations.
FedEx Express uses a global air-and-ground network for faster delivery of time-sensitive shipments