Thai FedEx looks to offset US impact

Thai FedEx looks to offset US impact
Bangkok Post (26 October 2007)

Federal Express, the world's largest express transport company, has voiced concern that the US economic slowdown would affect its Thailand and Indochina operations in the year ahead. Fortunately, the impact could be lessened by higher local growth, and increased political stability, said David Carden, the company's Thailand and Indochina managing director. He added that manufacturers had already adapted to fluctuating foreign-exchange rates and rising energy costs. ''I can't define the exact growth projection in Thailand, but I can tell you that our revenue would expand in response to the growing export sector,'' said Mr Carden. FedEx's 2008 fiscal year started on June 1 and runs to May 31 next year. Mr Carden said FedEx International Priority Direct Distribution had made its debut in May to help local exporters serve the 25-country European Union. The company also launched FedEx International Priority Freight Expansion to increase express freight coverage from Thailand and Asia Pacific. The two new services could enable local exporters to reach new markets as alternatives to the stagnant US market, said Mr Carden. In fiscal 2008, FedEx aims to focus on improving its cargo handling facility at Suvarnabhumi Airport. It will also study opening new stations in other provinces. Currently, it has seven stations in busy sites such as Chiang Mai, Laem Chabang, Pattaya and Nakhon Ratchasima. FedEx also operates 13 world service centres and 210 vehicles, including 165 panel vans and 45 motorcycles in Thailand. Mr Carden said the top three products shipped using FedEx services in Thailand were hard-disk drives, textiles and garments, and automotive parts. He said the company was in the process of switching to a paperless customs system that would improve efficiency. FedEx has also announced plans to move its Asia pacific hub to Guangzhou in China from Subic Bay in the Philippines in December next year. Mr Carden said the change was made because Guangzhou Airport could be expanded.