FedEx Express, a subsidiary of FedEx Corp and one of the world's largest express transportation companies, announced on July 28 that it has signed an agreement with Guangdong Airport Authority Logistic Company to expand and upgrade the FedEx Guangzhou Gateway by establishing a new FedEx South China Operations Center in Guangzhou.

The new FedEx South China Operations Center, which will be located within the FedEx APAC Hub at Guangzhou Baiyun International Airport, is expected to be operational in 2027. With an area of more than 41,000 square meters, the expansion will double the size of the current Guangzhou Gateway. The facility will include offices, sorting systems, operations areas, and a warehouse. It will be able to sort up to 25,000 packages and documents, including import and export shipments, per hour, three times the sorting efficiency of the current facility.

The signing ceremony between FedEx Express and Guangdong Airport Authority Logistic Company on July 28. [Photo provided to chinadaily.com.cn]

In 2021, Guangzhou Baiyun International Airport had a record annual cargo and mail throughput of 2.05 million tons, with international and regional cargo and mail throughput increasing by more than 20 percent year-on-year. Currently, the FedEx APAC Hub at Guangzhou Baiyun International Airport operates more than 210 flights per week, while the FedEx Guangzhou Gateway handles approximately 40 percent of the hub's import and export cargo volume. The new facility will provide stronger support for shipments between South China and global markets, as well as facilitate the smooth flow of cross-border trade in the region.

"FedEx is committed to China's long-term growth. We've been investing in expanding our facilities and network to provide efficient, stable, and reliable services to our customers and to support trade between the local and international markets," said Eddy Chan, vice president of FedEx Express and president of FedEx China.

"Our investment in the South China Operations Center demonstrates our confidence in China's economy and market growth as the global economy and trade recover, and supports the country's efforts to build a 'dual circulation' development pattern with smooth supply chain services."

Guangzhou is China's international trade center and one of the country's three major aviation hubs. In 2021, its total import and export foreign trade volume exceeded 1 trillion yuan ($148.25 billion), with a year-on-year increase of 13.5 percent. Small and medium-sized enterprises (SMEs) have also shown great potential in the Guangzhou market, with the output value of SMEs above designated size across the city growing by 11.9 percent year-on-year. The new FedEx South China Operations Center will help further connect SMEs and e-commerce businesses to the global market.