CHINA: FedEx opens Guangzhou hub, closes Subic

FedEx Express began operating out of its new Asia Pacific hub at the Baiyun International Airport in Guangzhou, China on 6 February signalling the end of its Subic Bay hub in the Philippines which the express giant has called homefor the last 14 years. “The launch of our new Asia Pacific hub is a significant […]


FedEx Express began operating out of its new Asia Pacific hub at the Baiyun International Airport in Guangzhou, China on 6 February signalling the end of its Subic Bay hub in the Philippines which the express giant has called homefor the last 14 years.

“The launch of our new Asia Pacific hub is a significant milestone for FedEx and reinforces our long-term commitment to this region,” said Michael L. Ducker, president, International, FedEx Express.

FedEx invested US$150 million in the Guangzhou hub and plans for it to become the key focal point of the company’s operations in the region for the next 30 years. There will be 136 flights per week into and out of the hub, providing access to more than 220 countries and territories served by FedEx.

FedEx was wooed by incentives given by China, particularly the ability to handle domestic cargo or ‘cabotage’, which means a huge potential market for the US express carrier.

Overall around 800 direct and indirect workers in Subic will lose their jobs after the completion of the FedEx transfer in April, at a time when thousands are getting laid off due to the global economic slump. The company, however, will conduct a re-integration programme for more than 500 FedEx workers.