FedEx, the world's largest express delivery company, has
purchased the remaining shares in its former joint venture with a
Tianjin-based company, paving the way for it to reinforce its
delivery network in China.
David Cunningham, FedEx's Asia Pacific president, said the
US$400 million purchase is a significant step for the company's
long-term strategy in China.
FedEx took over the remaining 50 percent stake in the
Datian-FedEx Express Delivery joint venture, which had been held by
its former partner Datian Group Co Ltd. FedEx also now owns
Datian's delivery stations in 89 Chinese cities and regions as well
as 6,000 Datian's former employees in the delivery sector.
The deal was made on January 24, and is pending approval from
the relevant government departments.
FedEx entered China in 1984, and set up a joint venture with
Datian, a major Chinese transportation handler, in 1999. The deal
will enable FedEx to optimize delivery services in China,
especially in inland regions.
China became the world's second largest air cargo transportation
market in 2005, and expects an average annual growth rate above 10
percent through to 2023.
(Xinhua News Agency February 5, 2006)
