FedEx sees bright outlook in rebounding Asian market

FedEx sees bright outlook in rebounding Asian market

SUBIC BAY, The Philippines (JP): Leading air express
transportation company Federal Express (FedEx) sees a favorable
Asian market ahead as the region recovers from its economic
crisis.

Managing director for its Southeast Asia operation of the
U.S.-based company Steve E. Cox said the realization of free
trade and growing online trade transaction volume in the region
would also bode well for the company.

"Looking ahead, we're very excited about what Asia is going to
give to us and what we can do for Asia. We do believe and we do
see that things are on the rebound again, and we see more
opportunities," Cox told a small group of reporters during a
recent tour of the company's Subic Bay hub facility in the
Philippines.

He declined to provide a projection. But he said FedEx
business in Asia grew by 28 percent last year.

"Even during the crisis, there were still companies that
needed time-definite and reliable transportation," he said.

FedEx, with its familiar purple-and-orange logo, entered Asia
in 1983. FedEx currently serves more than 30 countries and
territories in the Asia Pacific market with over 5,000 employees.
Operating its own wide-bodied MD-11, DC-10 and A310 aircraft,
FedEx offers over 260 flights per week to major cities in Asia.

"In Asia we're the leader in transportation and logistics.
Nobody has an extensive network like FedEx has," Cox said.

FedEx made a very significant investment in Asia in 1995 when
it opened a huge hub facility in the Subic Bay area, the former
U.S. navy base in the Philippines. The Subic Bay hub now connects
18 major markets in Asia from 14 five years ago. Nine aircraft
are now flying in and out of the hub every night.

Cox declined to disclose the total investment the company made
in the facility.

He said the facility allowed FedEx to transport packages
overnight to any major center in Asia efficiently.

"Subic Bay helped us to revolutionize the transportation and
logistics business in Asia.

"If you look at Asia and compare it with Europe, what Asia
doesn't have is a continuous land mass as most of the countries
here are separated by water," he said.

On average, nine FedEx aircraft fly into the Subic hub
facility every night from other FedEx centers in Asia. The
aircraft start to come in at about 11 p.m. at night, and once the
plane stops, the staff immediately unload the packages, sort them
out and put them on board the airplane flying to the packages'
destination. By 2 a.m., airplanes start to fly out and by 4:30
a.m. all planes must have departed.

FedEx customers can also track their shipment through the
computer, thanks to its super tracker technology.

Cox said it was FedEx who introduced the tracking system to
the industry.

Like other FedEx major hubs, the Subic Bay hub also has a
logistics center, which provides warehousing and logistics
management services to manufacturing companies.

Cox said the FedEx logistics center helps manufacturers to
significantly cut back on the cost of inventory.

"You can focus on manufacturing your products and improving
the quality of your products. Let FedEx take care of the movement
of your goods. Let us take care of the warehousing of your
goods," he said.

The logistics center with its high-powered computer network
helps clients process customers' orders and coordinate deliveries
of goods from around the world.

"So companies can cut the cycle time and save on the high
inventory cost," Cox said.

In Indonesia, FedEx established its presence in 1985 through
its licensee, PT Repex Perdana International. FedEx has grown
into a leading air express transportation company in Indonesia
for time-definite cargo shipments.

Starting in 1998, FedEx began using its own Airbus A310 to
serve Jakarta five times a week.

Connected to its Subic Bay hub, the flights bring customers in
Jakarta such services as the AsiaOne network, which provides
Jakarta with overnight delivery from major Asian centers, and the
Super X service which provides delivery to North America within
24 to 48 hours.

Asked about future expansion plans in Indonesia, Cox said it
would depend on how business volume developed here. (rei)