US courier giant Federal Express is to open its first Asian hub as a container transfer point and expand it into a full hub as business grows.
In the running to host the operation are Hongkong, the Philippines, Macau, Shenzhen, Taipei, Okinawa and Seoul. The Memphis-based firm expects to decide on the location this year.
''Initially, it will start out small as a container transfer point. Then we hope it will grow right along with our business growth,'' said Michael Ducker, the company's vice-president for South Pacific/Middle East.
Good infrastructure was the first criterion for the site, he said. Others included condition of the airport, power sources, telecommunications networks and flight times between the hub and destinations.
Federal's planned expansion into Asia comes less than a year after a costly retreat from Europe, where it made redundant 6,000 employees, shut down operations in more than 100 cities and closed its hub in Brussels. In the past four years, Federal has incurred US$1.2 billion in international losses.
But Mr Ducker said the company was going ahead with its Asia expansion because of the industry growth rates in the region.
Federal Express, the world's largest overnight courier, has 456 aircraft and employs 93,000 people in 184 countries.
