JOC Staff | May 09, 2011 10:54AM EDT
FedEx Express is building a Southeast Asia hub operation in Singapore that will become the carrier’s second-largest facility in Asia after its main sorting operation in Guangzhou, China.
FedEx said it expects to open the 282,700-square-foot regional hub in the second half of 2012 at the Airport Logistics Park free trade zone next to Singapore Changi Airport.
Along with sorting and other package and freight handling operations, the site will include airside access to two aircraft parking bays.
The decision to open a regional hub in Singapore is the largest action FedEx has taken in Asia since moving its main Asia hub to Guangzhou in early 2009.
The site will allow FedEx to speed up delivery operations across Southeast Asia, where the Association of South East Asia Nations has been promoting regional free trade agreements and countries including Vietnam have been seeking to lure low-cost manufacturing from China.
“The GDP of the ASEAN-5 economies is projected to expand by 5.5 percent and 5.8 percent in 2011 and 2012, respectively,” said David L. Cunningham Jr., president of the Asia Pacific at FedEx Express. “With this new regional hub in Singapore, FedEx will further enhance our ability to offer customers unparalleled connectivity and enhanced services.”
