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FedEx Express expands in Suzhou, China

By Jeff Berman, Group News Editor
March 28, 2011

Spurred by customer demands, FedEx subsidiary FedEx Express announced it has opened up a new China-based station in Suzhou in the Jiangsu Province, which is the company’s third station in Suzhou.

Company officials said the new 6,690 square-foot station in the Suzhou High Technology Zone, the city’s key innovation and industrial center, handles pick-up and delivery of international express shipments for customers the New District, Wuzhong District and part of downtown Suzhou. And they added that it is comprised of an advanced inbound and outbound sorting system, which can sort up to 3,000 shipments per hour. All packages are connected to the FedEx global network, which includes more than 220 countries and territories, through the nearby FedEx express gateway at the Shanghai Pudong International Airport.

“FedEx is committed to growing with the local Suzhou market by continually investing in its operations and improving service offerings to meet local demands,” a company spokesman told LM. “According to Ministry of Commerce of the PRC and Suzhou Customs, Suzhou achieved total import and export volume of over US$1 trillion during China’s 11th Five-year Plan from 2006 to 2010, almost triple its volume during China’s 10th Five-year Plan. In 2010 alone, the import and export volume in Suzhou was US $274.08 billion, an increase of 36.1 percent over 2009. And Suzhou is predicted to have a rapid growth cycle throughout China’s 12th Five-year Plan, which we are currently in.”

The new station will strengthen the company’s operating capabilities and flexibility to sustain FedEx business growth in Suzhou and east China, the spokesman said. And not only will the station address Suzhou’s boom in express delivery demand, but it will support a series of international service enhancements that FedEx Express introduced in Suzhou, which require an expanded workforce and more vehicles to ensure that we are providing fast and reliable services customers.

FedEx Express started planning to build a new station in April 2010, and it took about 10 months to complete. With the opening of the new station, FedEx Express now has more than 200 employees in Suzhou. This new station includes more than 30 locally hired employees in the new, including 18 couriers and 14 vehicles. . The remaining employees, who range from station manager to package handlers, play a supporting role in the station.

The spokesman pointed to myriad data points which support the thesis for added FedEx Express capacity in Suzhou, including how according to the State Postal Bureau, the national express delivery business witnessed a tremendous growth in 2010, increasing 25.9 percent over 2009. The eastern region of China accounted for the largest surge in express delivery, with Suzhou ranking in the top ten eastern cities experiencing a booming express delivery business in 2010.

“Suzhou is one of the fastest growing cities in China,” said the spokesman. “FedEx has been in Suzhou since 2003 and…has constantly strengthened operations capabilities in order to support business growth in Suzhou and east China. Because of its strategic location in the Suzhou High Technology Zone, FedEx can make faster pick ups and deliveries to its customers in the area. The new station complements the FedEx international express station in the Suzhou Industrial Park and the domestic service station, which is also in the Suzhou High Technology Zone.”

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About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).

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