FedEx makes new purchase of delivery network in China

FedEx, the world's largest express delivery company, has purchased the whole shares in its former joint venture with a Tianjin-based company to reinforce its delivery network in China.

David Cunningham, FedEx's Asia Pacific president, attributed the 400 million-U.S. dollar purchase a significant step for the company's long-term strategy in China.

With the contract, FedEx took over 50 percent of stake in the Datian-FedEx Express Delivery joint venture, which had been held by its former partner Datian Group. Co. Ltd. In the meantime, it owns Datian's delivery stations dotted in 89 Chinese cities and regions as well as 6,000 Datian's former employees in the delivery sector.

FedEx entered China in 1984, and set up a joint venture with Datian, a major Chinese transportation handler, in 1999. The new purchase 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 the year 2023.

Source: Xinhua