Fedex in SEA

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=09Article culled from the online edition of the Cambodia Times.

FedEx coming to Cambodia

Federal Express Corp (FedEx) plans to add Cambodia to its network that
currently links 11 cities in Asia.

Another South-East Asian country that will also join the AsiaOne
network is Myanmar, its Asia-Pacific senior vice-president Michael L
Ducker said.

The network currently links Seoul, Taipei, Tokyo, Osaka, Kaoshiung,
Manila, Hong Kong, Bangkok, Penang, Kuala Lumpur and Singapore,
Malaysia=92s Shipping Times reported.

In addition to linking up Cambodia and Myanmar to the AsiaOne network,
FedEx also plans to increase frequencies between Japan and the rest of
Asia and start direct flights to China.

The AsiaOne network is aimed at providing comprehensive linkages
between Asian cities and FedEx=92s global network.

"We aim to continually reduce the cycle time and hook the world
together in the shortest possible time," Ducker said.

"Our Asian hub in the Philippines is the only hub in the Asia-Pacific
that handles heavy freight, document sort and has an express
distribution centre (EDC)," he told journalists on a recent visit to
FedEx=92s Asian hub operations in the Subic Bay.

An EDC handles inventory management and distribution services for high
turnover, fast-moving, smaller volume and high value items.

"FedEx is the only service provider in the world to be certified by
ISO 9001," Ducker added.

Subic Bay became FedEx=92s Asia-Pacific hub in September last year.

The express transportation giant says it chose the Philippines as its
Asian hub as the Manila government has openly stated its objective of
becoming the logistics and air transport centre for Asia.

The Philippine authorities offered flexibility regarding FedEx=92s
operations and practices within the country and free trade zone
benefits.

Ducker said FedEx intends to expand its global route to include
Chinese cities. The proposed route will be
Anchorage-Beijing-Shanghai-Subic-Shanghai-Anchorage.

"We are waiting for allocations to move to the Hong Kong-Subic route,"
he explained.

At FedEx=92s Subic hub, there are six wide-bodied aircraft, comprising
two MD11s, one DC10 and three Airbuses which serve Asia and the United
States.

In the first year of operation, FedEx added an additional widebody
aircraft.

FedEx is now opting for DC10s, MD11s and Airbus aircraft while Boeing
747s are being phased out.

The total FedEx Subic hub area is 90,000 sq ft, with a box sort
capacity of 6,000 pieces per hour and a document sort capacity of
10,000 pieces per hour.

Once cargo reaches the Subic hub, it is separated into documents and
non-documents and placed on two conveyor belts. The upper conveyor
belt is for intra-Asia the United States, Japan, Guam, Canada, the
United Kingdom, France and Alaska mail. As for freight capacity, a
total of 30 tonnes of documents and non-documents can be moved a
night.

A FedEx spokesman said its aircraft turnaround time is between two and
three hours, with the earliest arrival at 10pm. The latest flight
leaves at 4.20am.

There are three feeder planes per day, to and from Manila to Subic,
which is licensed as a gateway to the country.

FedEx=92s Asian hub includes an EDC which is similar to an ontime
warehouse, and is likely to be used by customers requiring
just-in-time delivery.

"By early 1997, we hope to have three EDC sites at the airport," FedEx
operations manager Ephraim v Alberto said.

FedEx has established EDCs in nine cities in Asia, with five in Japan,
two in Singapore, two in the Philippines and one in Hong Kong.

Services include accepting customer orders, moving goods via the
quickest way possible and delivering them to the end-user, usually
within 24 hours or less from the time the order is received.

The EDC at the company=92s Asia-Pacific hub in Subic Bay is the first
distribution centre to be located within a FedEx express transporation
facility.

Subic Bay also acts as a main consolidation hub for intra-Asian mail
and serves as a collection and consolidation point for Asian mail
destined for the United States, Canada and Europe, Alberto said.

One additional area with potential in the future is the integrated
repair and return service, which is available in other parts of the
world.

FedEx recorded a 9 per cent increase in revenues to US$10.3 billion
for the fiscal year ended May 31, 1996.

George Moore
gmoore3501@xxxxxxx