FedEx Plans to Expand Its Gateway Facility in Guangzhou by Establishing a New South China Operations Center
Guangzhou, July 28, 2022 — FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and one of the world’s largest express transportation companies, today announced that it has signed an agreement with Guangdong Airport Authority Logistic Company to expand and upgrade FedEx Guangzhou Gateway by establishing a new FedEx South China Operations Center in Guangzhou.
The new FedEx South China Operations Center, which will be located within the FedEx APAC Hub at Guangzhou Baiyun International Airport, is expected to be operational in 2027. With an area of more than 41,000 m2, the expansion will more than double the size of the current Guangzhou Gateway. The facility will include offices, sorting systems, operations areas and a warehouse. It will be able to sort up to 25,000 packages and documents (including import and export shipments) per hour, three times the sorting efficiency of the current facility. FedEx will integrate frontier technology and sustainability into the facility’s design to provide an eco-friendly working environment.
In 2021, Guangzhou Baiyun International Airport had a record annual cargo and mail throughput of 2.045 million tons, with international and regional cargo and mail throughput increasing by more than 20% year-on-year. Currently, the FedEx APAC Hub at Guangzhou Baiyun International Airport operates more than 210 flights per week, while the FedEx Guangzhou Gateway handles approximately 40% of the hub’s import and export cargo volume. The new facility will provide stronger support for shipments between South China and global markets and facilitate the smooth flow of cross-border trade in the region.
“FedEx is committed to China’s long-term growth; we’ve been investing in expanding our facilities and network to provide efficient, stable and reliable services to our customers and to support trade between the local and international markets,” said Eddy Chan, senior vice president of FedEx Express and president of FedEx China. “Our investment in the South China Operations Center demonstrates our confidence in China’s economy and market growth as the global economy and trade recover, and supports the country’s efforts to build a ‘dual circulation’’ development pattern with smooth supply chain services. Our new operations center will be another important facility and regional center in China.”
“Guangdong Airport Authority Logistic Company has seized the opportunity to form a modern distribution system in China by working with FedEx to build the FedEx South China Operations Center,” said head of Guangdong Airport Authority Logistic Company. “It’s a concrete step to overcome the impact of COVID, demonstrating how the civil aviation transportation enterprise plays a crucial role in opening the main artery of the national economy by serving the ‘dual economic circulation,’ promoting the stability of the industrial and supply chains, and facilitating a smooth economic cycle.”
Guangzhou is China’s international trade center and one of the country’s three major aviation hubs. In 2021, its total import and export foreign trade volume exceeded the threshold of one trillion yuan, with a year-on-year increase of 13.5%. In recent years, Guangdong province has performed strongly in foreign trade, achieving an average annual growth of 92.1% in cross-border e-commerce imports and exports over the past five years. Guangzhou continues to lead the country in its scale of cross-border e-commerce, with a year-on-year growth of 13.5% in total imports and exports in 2021. Small and medium enterprises (SMEs) have also shown great potential in the Guangzhou market, with the output value of SMEs above the designated size across the city growing by 11.9% year-on-year. The new FedEx South China Operations Center will help further connect SMEs and e-commerce business to the global market.
Guangzhou is not only an important window for China’s foreign trade development, but also one of the key hubs of the FedEx global network. The current FedEx Guangzhou Gateway, one of the main FedEx gateways in China, connects major Asian cities through the FedEx APAC Hub, connecting the U.S. and the north American network through Anchorage and Memphis (USA), and the European network through Paris (France) and Cologne (Germany).