The Hindu Business Line : FedEx Express plans more gateways in India

The express carrier's recently launched service to Delhi and Shanghai is part of a larger round-the-world East-bound flight that connects the US and Europe to Delhi and further to China and Japan.

Mumbai , Sept. 13

WHILE its recently launched East-bound flight from Paris to Delhi and further to Shanghai and Tokyo marks a milestone in the FedEx Express plans to service Asian markets, the global express player is looking at further consolidating its presence in India.

"We plan to set up more gateways in India. With the newly launched service, Delhi will be our gateway to north India and Mumbai will serve as the gateway to the western region. However, there is a lot of economic activity happening in Bangalore, Chennai and in West Bengal and these are promising areas of business for us," said Mr Jacques Creeten, Managing Director, Sales & Marketing, Middle East, Indian Subcontinent and Africa, Fedex Express.

He told Business Line that FedEx was keen to set up a base in these centres, which were currently serviced through interline agreements with its partners. "It is a matter of time before we service them directly," he said.

The express carrier's recently launched service to Delhi and Shanghai is part of a larger round-the-world East-bound flight that connects the US and Europe to Delhi and further to China and Japan.

The service doubles the capacity on the express company's India route to 11 frequencies a week from six earlier. While five flights a week connect its European hub Paris to Delhi, the remaining six flights are its existing services to Mumbai.

The company has deployed an MD-11 aircraft with a capacity of 90 tonnes per flight on the sector. This amounts to 1,000 tonnes a week from the West and 500 tonnes each week to Asia.

According to Mr Creeten, the flight schedule offers North-based exporters a `next day' service to China and Japan. It also doubles capacity from the US and Europe for their North-based customers.

The new service also opens up Asian markets to dangerous goods capacity in documents, samples and heavy cargo that are now available in all three trading blocks, namely North America, Europe and Asia.

The service has been launched with an eye on the growing trade in Asia, which is currently estimated at $50 billion and projected to grow 28 per cent annually. FedEx has consolidated its network in the Far East, with 400 flights a week connecting 39 countries in the region and 10,000 staff deployed for distribution alone.

The new connection to China takes the number of frequencies in China to 26 a week, which he claimed was more than that offered by any other company.

Chinese hub: The company also plans to move its hub in Subic Bay (the Philippines) to Guanzhou in South China, where the company is setting up its Asian hub with an investment of $150 million.

The hub, which will connect with its global hubs at Memphis and Paris, is expected to be ready in two-and-a-half years.

The company will connect the three centres with the A380 aircraft, which has double the capacity of an MD-11 aircraft, at only 30 per cent additional cost.

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