Announcing its move to the $530m centre, the express giant also reveals a partnership with local logistics operator International express giant Federal Express (FedEx) yesterday became the first tenant at the Tradeport consortium's HK$530 million logistics centre at Hong Kong international airport. The Memphis-based company also said it had struck a deal with Hong Kong-based Sun Logistics to supplement its goods distribution and inventory management capabilities in Hong Kong. 'FedEx's supply-chain management services are particularly targeted for companies which require global solutions that might include international shipping, local distribution and customised activities relating to the products or services,' said Dennice Wilson, vice-president, supply-chain solutions (Asia-Pacific). Ms Wilson would not disclose the length of the contract with Tradeport, signed late last month, nor would she say which multinational retailers would be served at the facility other than to say she expected the initial companies to be on site 'around the middle of next month'. She denied reports electronics giants Samsung and Fujitsu were involved in the Tradeport signing. The deal with Sun Logistics, an equal joint venture set up in August 2000 by Sun Hing Holdings and Sun Hung Kai Properties, is believed to be for three years. Sun Logistics will provide local distribution and warehousing functions through its trucking fleet and facility in Kwai Chung, while Tradeport will become FedEx's airport hub for last-minute regional activities such as consolidation, packaging and other market- or industry-specific product assembly needs. 'If you look at their business pattern in Asia, FedEx likes to partner with local companies which bring more intimate market and cultural knowledge,'' a source close to the deal said. 'They are, of course, very good at the air courier business, but they would like to generate more revenue from value-added services such as those they will be employing at Tradeport.' Ms Wilson said 65 per cent of Hong Kong exports originated from the Pearl River Delta. She said 34 per cent required some form of value addition in Hong Kong, leading her to believe the Tradeport venture had great potential to supplement the revenues of its core international express business, whose daily package volume in Asia grew a comparative 16 per cent in the fourth quarter, according to results released on Wednesday. FedEx negotiated a variable space allocation at Tradeport, allowing it to shift the size of its capacity commitment as demand dictates. FedEx Express, whose global operating income jumped 26 per cent to US$236 million in the fourth quarter, will be billed for its tenancy on a transaction basis. Its pure express delivery business will continue to operate from Asia Airfreight Terminals, the airport's No2 cargo handler.