FedEx plans to invest more than $100 million to establish a hub at Shanghai Pudong International Airport (PVG), according to ATW Daily News.
FedEx is the third international air express operator to establish a hub at PVG. UPS did so in December 2008 and DHL has established its North Asia hub at PVG.
FedEx’s hub is expected to begin operations in 2017 on a 134,000 square meter site with the capacity to handle up to 36,000 parcels and documents per hour. The facility’s annual sort capability is expected to reach more than 90 million parcels and documents.
FedEx noted in a statement that it will gradually expand its flight frequencies and cargo turnover at PVG to meet growing market demands. Today, it operates 68 weekly flights at PVG.
“Shanghai is one of the fastest-growing economies in China with foreign trade playing a significant role. The new FedEx hub will allow our customers in Shanghai and East China to benefit from these increasing trade flows,” FedEx Asia Pacific president David Cunningham said.
FedEx announced a $1.7 billion profitability improvement plan earlier this month.