FedEx to Expand Hub in South China by 2027

FedEx Express has signed an agreement with Guangdong Airport Authority Logistics Company to expand and upgrade the FedEx Guangzhou Gateway.

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This expansion will establish a new FedEx South China Operations Center at its Asia Pacific Hub at Guangzhou Baiyun International Airport.

FedEx South China Operations Center will cover an area of over 41,000 m2, more than double the size of the current Guangzhou Gateway, and the company expects it will be operational by 2027.

The facility will connect outbound shipments from customers in southern China with FedEx’s international network through the Asia Pacific Hub.

It will also receive and process inbound shipments arriving at the Hub for delivery to local customers.

The Center will include offices, state-of-the-art sorting systems, operations areas and a warehouse.

It will be able to sort up to 25,000 packages and documents per hour, three times the sorting efficiency of the current facility.

FedEx will also integrate frontier technology and sustainability into the facility’s design to provide an eco-friendly working environment.

“We continue to expand our network and service offerings to cater to the growing needs of our customers in the AMEA region and enhance their connections to global markets.”

Kawal Preet, president of the Asia Pacific, Middle East and Africa (AMEA) at FedEx Express.

“China is integral to our regional and global network. Our investment in the South China Operations Center will support our long-term growth in a region with high economic potential.”

“Guangzhou sits within the Greater Bay Area of the Pearl River Delta which includes Shenzhen and Hong Kong. It is a region that is taking proactive steps to integrate against a blueprint that will further strengthen its position as a global economic powerhouse,” added Preet.

FedEx Connects APAC with North America and Europe

FedEx Asia Pacific Hub at Guangzhou Baiyun International Airport, one of the main FedEx gateways in China, connects Asian customers to FedEx U.S. and North American network through Anchorage and Memphis and the European network through Paris (France) and Cologne (Germany).

Currently, the FedEx Asia Pacific Hub operates more than 210 flights per week, while the FedEx Guangzhou Gateway handles approximately 40% of the hub’s import and export cargo volume.

In 2021, Guangzhou, the capital city of Guangdong province saw its total import and export foreign trade volume exceed by 1.08 trillion yuan (US$159.58 billion).

One of the reasons for the region’s success is the productivity of its small and medium-sized enterprises whose output value grew by 11.9% year on year.

The new FedEx South China Operations Center will become an important component in the local SME ecosystem helping to fuel further growth.

Last year, FedEx introduced six new intercontinental flights originating from the Asia Pacific (APAC) region, contributing additional capacity of almost 2,700 tonnes (2,690,000 kgs) in and out of APAC to the U.S. and Europe.

And earlier this year, FedEx enhanced its services in the AMEA region (which includes APAC) with more time-definite delivery options to help businesses reach customers faster.