FedEx, Guangzhou ink pact to expand cooperation

US-based delivery services provider FedEx Express has signed a memorandum of understanding with the Guangzhou municipal government to work together on Customs clearance and cross-border e-commerce, and establish its operations center in South China, according to a statement by the company on Wednesday.

The two sides, it said, will jointly promote FedEx's business in Guangzhou, Guangdong province, expand e-commerce logistics services and support the city's development as an international cargo hub.

"We have actively intensified collaboration with local governments and partners to more efficiently connect Chinese enterprises with the global market, contributing to the increase of China's exports and imports," said Eddy Chan, senior vice-president of FedEx and president of FedEx China.

"Through the strategic collaboration with the Guangzhou municipal government, FedEx will be able to better meet customer needs, improve Customs clearance efficiency, connect our customers in Guangzhou and southern China more efficiently to global markets, and further promote the development of small and medium-sized enterprises and cross-border e-commerce," Chan said.

Guangzhou's foreign trade rose 1.1 percent year-on-year in 2022 to 1.09 trillion yuan ($156.44 billion), accounting for 13.2 percent of the imports and exports of Guangdong province.

After it became a cross-border e-commerce pilot city in 2013, the size of Guangzhou's cross-border e-commerce reached 137.59 billion yuan last year from 1.46 billion in 2014.

FedEx's Asia-Pacific hub is located at the Guangzhou Baiyun International Airport.

As a major hub in the Asia-Pacific, the facility currently operates more than 210 international flights per week.

Last year, FedEx launched an AI-powered sorting robot at its South China e-commerce shipment sorting center in Guangzhou to handle the growing volumes of e-commerce-related shipments.

As the global economy speeds up its pace of recovery, FedEx will continue to invest in building new facilities and expanding its network to connect its customers in China to the world, according to the statement.