Putting logistics at the heart of commerce

Global courier companies deliver with upgraded services and tactics that now include rail, Zhong Nan reports

After years of delivering parcels, business documents and university applications between China and the rest of world, major international carriers have changed their tactics to offer more upgraded services such as the conveying of healthcare products, precise parts for aircraft manufacturers and high-end foods in China's fast-growing express delivery market.

Many of these opportunities come from China's soaring economy and application of information technology, as well as the changing population structure between urban and rural areas, which have pushed the country's express delivery sector to a further division among more sophisticated and segmented markets.

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Frederick Smith, chairman and chief executive officer of FedEx Corp, said FedEx has found new market growth points in China's high-end manufacturing industry, such as providing timely delivery of airplane parts and industrial equipment from developed markets to China, as well as expanding its facilities for health-related products at its Shanghai international hub.

As the operator of the world's largest cargo airline, FedEx has continued to work with Shanghai Airport (Group) Co Ltd to establish an upgraded international express and cargo hub in Shanghai.

After its completion in 2015, the new hub is expected to more than triple the capacity of the current FedEx facility in Shanghai, allowing it to process up to 36,000 documents and parcels per hour.

"Expanding our hub at the Shanghai Pudong International Airport is a strategic move for FedEx. The new hub will add more services and help facilitate growth in international trade, most notably between eastern China and the rest of the world, especially with emerging markets," Smith said.

Supported by mature air and maritime transportation facilities, and a large number of factories in the Yangtze River Delta region, Shanghai's foreign trade volume surged to more than $39.95 billion in 2013, up 8.5 percent on a year-over-year basis, according to the Shanghai municipal government.

With an investment of more than $100 million, the new hub in Shanghai is a major step in an ongoing growth plan to expand the FedEx network and service offerings throughout the Asia-Pacific region.

"We have also found there is a growing demand for fast and efficient international express services between Chinese manufacturers and foreign buyers, especially in emerging markets such as Africa, the Middle East and South America," said Smith.