“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.
Meanwhile, FedEx Freight has announced it will cut 900 jobs from 130 of its facilities around the globe as a result of the ongoing weakening economic conditions.