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(New
Delhi Exclusive)
Responding to the economic boom in India
and China, FedEx becomes the first carrier to offer next day delivery from India
to Shanghai and Tokyo with a new daily MD-11 freighter flight last week (September
7).
Jacques
Creeten, FedEx’s MD sales and marketing, Middle East, Indian sub-continent
and Africa told FlyingTypers:
“From a global perspective, India is a key
market.
“It is already in the top ten economies
in the world. “When you look at the forecasts being done by different
authorities, India is going to end up in the top three economies in the next
40 years.
“It is a crucial part of our global network.
“We have always responded first to the needs
of Indian exporters and this new service will facilitate trade between the two
Asian giants that are poised to re-shape the world economic order.”
At deadline, FedEx had completed four flights
of the new service out of Delhi, reporting response had been very encouraging.
“Going by that trend,” said Creeten,
“we hope to do well.”
While Delhi is now on FedEx’s radar, the
company has not closed its eyes to opening gateways in other cities of India.
Jacques Creeten explains:
“If you look at the international business
in India, it is really forming around three major clusters: Northern India with
Delhi as the base, Western India with its center in Mumbai, and Southern India
with a proliferation of Industries in Chennai, Bangalore and Hyderabad.”
Creeten said, FedEx would continue to look at
business growth from all over the country.
“India is just at the beginning of its entry
into global trade and FedEx will continue to invest as and when
the opportunity arises.”
Speaking of general air cargo conditions the executive
noted:
“I think in terms of infrastructure a lot
of work needs to be done.
“At the moment, India has been taken by
surprise by its own growth.
“The government is aware of that.
“Airport infrastructure is high on the agenda,
road development is on and even a lot is being done for the ports.
“Everything needs to be executed and the
sooner the better.
“The enhancement of infrastructure is a
necessity for the continuation of the growth rate that you have now.
“If investments are not made, India will
suffer in the future.”
Elsewhere recent moves by FedEx suggest just how
powerful the Chinese and Indian economic explosion has become.
“China is India’s second largest trading
partner,” Creeten said, “and it is anticipated that the value of
trade between the two countries will surpass USD 20 billion in the three year’s
time.”
In keeping with that growth, the company now has
ramped up its network to and from India to 11 flights: five weekly westbound
flights from Mumbai, an equal number of eastbound flights from Delhi and one
weekly eastbound flight from Mumbai.
Each of the flights is handled by a MD-11 with
a capacity of 90 tons.
Total tonnage per day (both eastbound and westbound)
is 180 tons.
In addition to the overnight delivery to China
and Japan, the new FedEx flight also offers one-day transit time improvement
for inbound shipments from U.S. and Europe to the export hubs located in north
India.
In Delhi and the northern regions, these export
hubs are Agra, Jalandhar, Amritsar, Chandigarh, Ludhiana, Jaipur and Udaipur.
India and China have an escalating trade relationship that includes textiles,
chemicals, pharmaceuticals, aluminum, iron ore and ferrous metals.
In 2004, India’s trade with China reached
USD13.8 billion and is expected to reach USD20 billion in 2008.
FedEx operates 11 weekly flights in India and 23 weekly flights in China and
has the green light to operate three additional weekly flights beginning March
2006 from China.
The eastbound flight route includes a direct point-to-point
connection between Shanghai in China and Narita in Japan, extending cut-off
times for cities in eastern China by up to one day.
As for the tariff from India to China or Japan,
Creeten pointed out that FedEx was an Express company and not a cargo one.
“Keeping that in mind,” he said, “our
tariffs into any of the markets are very competitive.”
FedEx is not the only express company to take
an interest in China.
In fact UPS has chalked out an ambitious move
to establish major air hubs in China launching package delivery to 23 cities
across China from this month onwards with plans to set up an air hub in Shanghai
during 2007.
FedEx as reported has signed an agreement to move
into Guangzhou Baiyun International Airport as it closes its former Asia hub
at Subic Bay in the Philippines.
(Tirthankar
Ghosh)
