FedEx to build new US$100 million air cargo hub at Shanghai Pudong

FEDEX has revealed plans to develop a new US$100 million air freight hub at the Shanghai Pudong International Airport, which will triple the capacity of its existing facility, by processing up to 36,000 items an hour.

This comes as the US express giant has signed an agreement with Shanghai's airport operator to establish the new "FedEx Shanghai International Express and Cargo Hub" that will be completed in early 2017, a company statement said.

"Demand for FedEx shipping services, both to and from China, is expected to increase. By expanding our infrastructure in Shanghai, we will be equipped to handle increased volumes in Asia," said FedEx Express COO Michael Ducker.

The 134,000-square metre hub is also expected to enhance connectivity between China's developed eastern coast and the United States and Europe for its customers in Asia Pacific and to support global trade growth along these regions.

The new facility will meet the company's expansion requirements for the next 20 years. It will have a special on-site facilitation by the Chinese Immigration Authority and Shanghai Customs for efficient cargo clearance. The hub will also house the Ground Support Equipment (GSE) facility for FedEx equipment maintenance as well as an area for Unit Loading Device (ULD) staging.

Li Derun, president of Shanghai Airport Group Co Ltd, said the venture will help Shanghai strengthen its role as a regional shipping and logistics centre, Xinhua reported.

FedEx Express offers 68 flights a week in and out of Shanghai.