FedEx making most of India’s business boom from China hub

Monday, 1 October 2012 00:00 - - {{hitsCtrl.values.hits}}

GUANGZHOU: It is operations of a different kind at the international airport here when FedEx’s “midnight hub” comes alive, taking advantage of the complete pause in activities at the airport for four hours every night. About a dozen of its aircraft fly in and out to pick up and drop cargo during this time to make exclusive use of the runways.

Hubs are not new to FedEx, which operates many of them from nooks and corners of the world, including from India, as a global logistic service.

But its operations at the Baiyun International Airport here takes the cake as about 13 of its flights land, unload, load and take off in a four-hour time making exclusive use of the two runways when there are no activities.

FedEx officials say their Asia-Pacific hub here known as the “midnight hub” is one their best marketing and technological innovations.

This has been undertaken taking advantage of a major opening provided by the Chinese government in 2009 permitting it to make use of the runways despite no operations for a few hours at the airport.

“Night after night, everything is done in clockwork precision as we have to take full advantage of the night window,” FedEx’s Indian subcontinent, West Asia and Africa Marketing MD Rakesh Shalia said.

FedEx looks at Guangzhou hub as a strategic investment to take full advantage of the massive increase in e-business.

“The e-business market is registering an explosive growth in India. Already we are seeing a 40 to 50 per cent growth in that sector,” he told PTI.

The hub helps FedEx to rush e-business orders from place to place. With FDI retail poised to step into India, the US multinational feel the hub will play a key role in helping take full advantage of it.