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    China Business
     Mar 30, 2006
Fedex to introduce three new China flights

BEIJING, March 28 Asia Pulse - US logistics giant FedEx Corporation (formerly Federal Express) announced on March 27 the introduction of three new flights into China later this month. This will provide the company with a total of 26 weekly flights to China, the most of any US-based cargo carrier, said sources with FedEx.

To accommodate China's surging demand for international cargo transport, FedEx Corporation has accelerated steps to expand its business in China. On January 24, 2006, FedEx Corporation entered into an agreement with Tianjin Datian W Group Co Ltd



(DTW Group) to acquire DTW Group's 50% share of the FedEx-DTW International Priority express joint venture and DTW Group's domestic express network in China for approximately US$400 million in cash.

This acquisition will convert the company's joint venture with DTW Group, formed in 1999, into a wholly owned subsidiary and help FedEx Corporation expand international and domestic express businesses in China, said sources with FedEx Corporation. The acquisition is expected to be completed in the first half of the financial year of 2007, when FedEx Corporation' employees in China will exceed 6,000.

Conducting business in China since 1984, FedEx has expanded its service to more than 200 Chinese cities. The company is expected to expand its service network to another 100 Chinese cities in the next five years.

FedEx Corporation also plans to move its Asia-Pacific regional center to South China's Guangzhou city. Sources said FedEx Express has invested $150 million in its Guangzhou operations and started the construction of a new regional center there this January.

Industry insiders said FedEx's new move in China indicates that China's logistics market is more important to overseas investors. According to China's commitment to the World Trade Organization, China fully opened its logistics market to overseas investors in December 2005. Sources forecast that China's logistics market is expanding at an annual growth rate of 30%.

(Asia Pulse/XIC)

 

 
 



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