FEDEX Returns To The Philippines

Will Now Rely Less on Guangzhou Hub

8 October 2020

U.S.based courier Federal Express (FedEx) has announced its $30 million investment in the Philippines as it develops a new regional cargo terminal at Clark Air Base in Pampanga, as the U.S.-China trade war intensifies forcing the company to rely less on its Guangzhou hub.

The company said construction of the new and larger gateway, which began late last year, will be completed by first quarter of 2021 and will start operation in April 2021. 

The two hectare facility will be expanded in phases, as it triple FedEx's sorting capability in the Philippines to 9,000 documents and parcels per hour initially. The facility will also have dedicated areas to process large heavyweight freight. 

Fedex in a company statement said, the investment in Clark will bring the total number of team members to more than 800 workers surpassing FedEx's former facility at Subic Bay.

"This facility is the latest in a series of strategic investments that FedEx has made in the Philippines and across Asia-Pacific to enhance coverage and improve service levels in this important region," John Peterson, managing director at FedEx Philippines.

The Clark facility will house initially the company's expanded Philippine operations to service Covid19 vaccine delivery next year.

FedEx moved in 2009 its regional hub to Guangzhou from Subic, a former U.S. naval base turned industrial zone, which had served as its hub since 1995.

FedEx maintains however that it is keeping its Asia Pacific hub in Guangzhou for now.

“FedEx is not relocating and has no plans to relocate its Asia Pacific Hub, for now.” says Peterson.

“Our planned operations in Clark will enable us to better serve our customers in the Philippines and are part of our ongoing expansion throughout the Asia-Pacific region as our business continues to grow,” the company said.