FedEx Express on Wednesday confirmed that it will build an Asia-Pacific express hub at China's Guangzhou Baiyun International Airport.
The announcement, following UPS's decision to base domestic China express service out of a hub in Shanghai and DHL's investment in Chinese operator Sinotrans, puts the world's three largest air express carriers within the rapidly growing market that has become central to world trade.
FedEx said it will invest $150 million in building the hub on a 155-acre site at the airport, which opened in August 2004 in China's industrial southern region.
FedEx said the site will take over intra-Asia hub operations from the carrier's facility at Subic Bay in the Philippines when it opens in December 2008.
"We believe this hub will stimulate business both in Southern China and globally," said David L. Cunningham Jr., senior vice president of FedEx Express Asia Pacific.
Reprint permission