The integrator has chosen Shanghai to manage the vast and unique market from, but Hong Kong is still the regional hub
Memphis-based integrator Federal Express (FedEx) will next month create a China business unit in Shanghai as the company intensifies its focus on the lucrative mainland market.
The move makes FedEx the second global express operator in the past three months to decide it is no longer tenable to manage its China operations from Hong Kong, following a similar move by United Parcel Service in July.
'The opportunities on the mainland are so enormous that you need to manage China from within China. We believe it is a wise investment to set up a China headquarters in Shanghai,' FedEx president (Asia Pacific) David Cunningham said.
The value of China's air cargo imports was expected to reach US$60 billion this year, according to a report released in the first quarter by the United States-China Business Council.
The mainland's express market is expected to grow 30 to 35 per cent this year, according to the China International Freight Forwarders Association, a rate Mr Cunningham said FedEx would surpass.
China is its fastest-growing market in Asia. The company would retain Hong Kong as its headquarters for Asia-Pacific, where it saw 16 per cent volume growth in the second quarter, much of which was generated on the mainland.
