Taipei, July 6, 2023 – FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and one of the world’s largest express transportation companies, announced the signing of an agreement with Farglory Free Trade Zone, expanding its existing transshipment center with a new facility located at the Farglory Air Cargo Park at Taoyuan International Airport. The enhanced sorting and storage capabilities of the new facility will better serve local Taiwanese enterprises seeking to enter international markets and meet the growing commercial needs of the Taiwan market, thereby advancing Taiwan’s position as a vital actor in global supply chains.
The new facility is expected to be operational in 2025. It will span over 15,000 square meters, more than double the size of the current facility. It will consist of four floors above ground and one basement, which will include offices, operating areas, and storage areas, composing approximately 19,000 square meters of total indoor space. The facility will be equipped with an advanced automated sortation system capable of sorting up to 9,000 packages per hour, which is 2.5 times more efficient for import packages and 1.2 times more efficient for export packages compared to the existing facility. In line with the company’s goal of achieving carbon-neutral operations globally by 2040, the new facility will also incorporate sustainability into its operations by adopting electric forklift trucks and trailers.
“We are pleased to reach this important agreement with Farglory Free Trade Zone. As a trading hub in East Asia, Taiwan plays a pivotal role in the export of semiconductors and electronic components. The Taiwan market has become crucial for the smooth operation of the entire Asia-Pacific region and even the global supply chain,” said Jeremy Goldstrich, Vice President of North Pacific, FedEx Express. “As an international logistics provider deeply rooted in the Asia-Pacific region, FedEx is committed to providing better service experiences to our customers throughout the region, particularly in the North Pacific, to support their future business growth. We look forward to witnessing the completion of this modern operating facility in 2025, enabling us to make even greater contributions to the region’s economic development.”
Statistics reveal that Taiwan’s import and export trade volumes have shown steady growth since 2010.[1] Taiwan is increasingly reliant on stable logistics support and fast cargo handling efficiency. The expanded facility will help FedEx meet the growing needs of its customers and the market, improve operational safety and customs clearance efficiency, and explore business opportunities as the Taiwan market expands. Additionally, the project will create more job opportunities for local employees.
“The signing of this agreement with Farglory Free Trade Zone is a significant milestone in the company’s development in the Taiwan market. Our expanded facilities will further enhance our competitiveness in the logistics sector and provide more robust support for trade activities in Taiwan,” said Michael Chu, Managing Director of FedEx Taiwan. “We’ll redouble our commitment to providing high-quality logistics solutions, working hand in hand with our customers and partners in Taiwan. FedEx will be able to foster better connections and cooperation between Taiwan and global markets while taking steps to reduce the carbon footprint of our operations.”
Taoyuan International Airport serves as a hub in East Asia, with a dense network of routes and ample aviation fleet capacity. In 2022, its total international cargo volume ranked 4th among all airports in the world,[2] handling nearly 50% of Taiwan’s import and export trade value. High-end manufactured goods have consistently been Taiwan’s primary exports, and air cargo has become essential for the island’s economic competitiveness. In this context, Farglory Free Trade Zone, covering an area of 45 hectares, brings together logistics, people, business, capital, and information to deliver high economic benefits and competitiveness. Through cooperation with Farglory Free Trade Zone, FedEx will also help enhance Taoyuan International Airport’s capacity for international air transport.
“Farglory Free Trade Zone is Taiwan’s only aviation-based free trade zone. It is one of Taiwan’s major economic development projects and the leading project of Taoyuan Aerotropolis,” said Mr. Yeh ChunYao, Chairman of Farglory Free Trade Zone Investment Holding Company. “It occupies a core position in development, with total investments of 22 billion NTD. With its investment in high-tech and its novel sortation system, FedEx will expedite cargo handling while utilizing low-emissions mobility equipment to reduce energy and resource consumption. This will greatly improve the efficiency of air cargo transportation in Taiwan while making progress towards the goal of environmental protection. Through the joint cooperation of both enterprises, we will show the world Taiwan’s competitiveness in air cargo industry development.”
FedEx commenced operations at Taiwan Taoyuan International Airport in 1990. Currently, FedEx operates 44 weekly flights to and from Taiwan, including daily direct flights to the United States. The expanded transshipment center will provide support for importers and exporters, including small- and medium-sized enterprises and e-commerce companies, offering more convenient and reliable transportation services for businesses exploring opportunities in international markets.
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About FedEx Express
FedEx Express is one of the world’s largest express transportation companies, providing fast and reliable delivery to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a definite time and date.
About Farglory Free Trade Zone
Farglory Free Trade Zone is the first among more than 700 free trade zones in the world to fully integrate functions “within national territory but outside customs territory.” It covers an area of 45 hectares and has an air cargo terminal, a value-added zone, a logistics hub, a cold chain logistics warehouse, a domestic/foreign logistics center, and other areas with high economic efficiency and competitiveness. The annual cargo handling capacity of the whole zone is estimated at 1 million tons, empowering a new era of leadership in global air cargo logistics.
[1] https://www.trade.gov.tw/Pages/List.aspx?nodeID=1375
[2] https://aci.aero/2023/04/05/international-travel-returns-top-10-busiest-airports-in-the-world-revealed/