FedEx
Cargo clearance facilities form “a
significant component of the space requirement” for international traffic expansion – particularly in the US, where customs and border protection is one of only several federal agencies involved in the cargo-clearing process. Each agency must have enough space available to perform its work in a timely fashion.
Future growth FedEx Express is also expanding its international operations in another way. “One of the interesting areas is expansion of domestic service in other countries,” says Mitchell.
One example is Guangzhou, where the existing international hub is also increasingly becoming a major domestic hub for China. Another is Mexico’s San Luis Potosí, where FedEx Express is developing a hub-and-spoke operation to serve this big, highly populated country. The company also has a sizeable gateway operation at Viracopos-Campinas International Airport near São Paulo, Latin America’s biggest city. As the economies of Brazil and other South American countries continue to expand, it appears
22 Issue 1, Volume 5
possible that FedEx Express could establish a South American hub, perhaps in Brazil. Similarly, the company’s recent acquisition of Indian logistics and express- delivery company AFL Pvt. Ltd. and its affiliate Unifreight India Pvt. Ltd. argues that FedEx Express may open a Southern Asia hub on the Indian subcontinent. The integrator already operates
31 international flights to Delhi, Mumbai and Bengaluru and notes that not only is India already the world’s fourth-largest economy, but is also forecast to become its third-largest by 2020. “You can look at the map and see where we’re not,” says Mitchell. “Obviously, it’s a matter of time – but we have no plans on the boards right now,” he adds.
It is clear that FedEx Express’ future international expansion will be fuelled by two important aircraft types, says Mitchell.
One is the Boeing 777F, which he
says offers 57% more range than the MD-11Fs, which operate the bulk of the carrier’s long-haul routes now. The B777F “is an incredible long-range airplane,” says Mitchell.
It can perform direct transpacific flights and non-stop Asia-Europe flights, permitting the company to offer cargo drop-off times in each market. FedEx Express has 11 B777Fs in service and 29 more on order, all due for delivery by 2019. Eventually B777Fs will replace most or all of the carrier’s MD-11Fs, which in turn will replace the integrator’s 75 ageing MD-10-10s and MD-10-30s. While FedEx Express will retain its 53 Airbus 310 freighters and 71 A300- 600Fs for the long-term – the A310 is a popular change of gauge aircraft for intra-Asia and intra-US flights, according to Mitchell – the company plans to retire all 77 of its B727-200Fs by 2015. They will be replaced by Boeing 757s, for which FedEx Express has already contracted. It already operates 48 Boeing 757 package freighters and Mitchell says that not only does the type offer 20% more cargo capacity than the B727-200F, it also burns 36% less fuel. With these fleet orders in place, FedEx Express should be in a good position to continue growing its global hub network well into the future.
GLOBAL AIRPORT CITIES
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