Global logistics: FedEx rolls out service expansions in Mexico
Jeff Berman, Group News Editor -- Logistics Management, 2/12/2009
MEMPHIS—FedEx Express, a subsidiary of FedEx, said this week it is expanding operations in Mexico in an effort to improve its domestic and international service offerings for shippers.
This news follows an August 2008 announcement in which FedEx Express rolled out a new domestic next-day service in Mexico entitled FedExNacional, which it said provides shippers with “highly reliable, convenient and quality express shipping solutions across Mexico.
The major components of its Mexico expansion for FedEx Express cited by the company include:
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expanding its air cargo terminal and bonded warehouse facility at Miguel Hidalgo y Costilla International Airport in Guadalajara, Jalisco, which serves as a principal operations center for FedEx international and domestic shipments in Mexico. This expansion will add more than 41,613 square feet of warehouse space, bring the total area of the facility to 85,000 square feet; and
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the launch of a new San Luis Potosi-based hub to support FedEx Nacional, which is more than 22,000 square feet and has the capacity to process 6,000 shipments per hour.
FedEx officials said the new Guadalajara facility will enhance operational efficiencies and improve package processing times, as well as help FedEx manage the increasing demand it is seeing for imports and exports transferred in Guadalajara, which the Mexico Institute of Transportation said is 90,000 tons per year. And the location of the San Luis Potosi hub being located in Mexico’s “Golden Triangle,” a commercial and industrial center makes it a logical location for a domestic service distribution hub, said FedEx, adding that it is well-equipped to meet the growing demand for express shipping across Mexico.
FedEx International Spokesperson Janella Loaiza told LM that after operating successfully in Mexico for 17 years, the company is responding to increased customer demand by expanding its portfolio to include domestic service, adding that FedEx expects to be a leading player in this segment.
“With the Guadalajara expansion, we are also responding to the need we see to make our customers in Mexico very competitive in the global marketplace,” said Loaiza. “It pays to make them successful, faster and more efficient—for FedEx and the country’s economy.”
And the company’s expansions in San Luis Potosí and Guadalajara, said Loaiza, are strategic initiatives to meet the demand for domestic service in Mexico and the increasing opportunity for international trade that the country must leverage to continue to grow.
“Mexico has had strong economic growth in the past few years and while the economy is soft, the areas where trade is essential continue to show potential,” explained Loaiza. “We want to be in front of that opportunity, ready to serve our customers and help them leverage the marketplace. These investments put us in an ideal position to accomplish those goals.”
Operational improvements by the numbers: At the Guadalajara air cargo terminal and monitored bonded warehouse location, Loaiza said that along with the added space it now has, there will be 10 new truck docks to enable safe and load and unload operations, an expanded—nearly 7,000 square feet—of maneuvering area to load and unload vehicles and containers, the potential to reduce package processing times by up to 40 percent, new storage capacity that is expected to grow by 83 percent, and additional room for package examination by customs inspectors will reduce the time for customs clearance and speed up the delivery of packages. Loaiza noted that the the facility handles significant import and export volumes estimated at more than 90,718 kilograms (200,000 lbs) on a daily basis and with the expanded facility, FedEx will be able to process the equivalent of more than 136,078 kilograms (300,000 lbs) daily.
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