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Press Releases
Improving links with inland cities promises faster growth for China's interior
BEIJING, May 11, 1998 - Speaking at the recent World Economic Forum's China Business Summit in Beijing, Scott S. Hallford, Asia Pacific vice president of international affairs for Federal Express Corporation (FedEx), outlined how better and faster air transportation links are bolstering economic growth in the West - and could do the same for China's developing economy.
"An integrated air express service operating within a liberal aviation environment benefits China's economy by accelerating economic expansion through infrastructure development, foreign investment and the export of manufactured goods," said Hallford. "Stimulating high-value exports is the cornerstone of continued economic development, and a comprehensive and international air express network will complement and expand China's international competitiveness."
"Air freight networks provide a stimulus to airport development, regional economies and employment," Hallford maintained. "Using airports in an efficient, integrated air transportation network provides a stimulus to development and enables surrounding areas to attract high technology investment."
Economic development in China has been the fastest in coastal areas, due to better transportation links in those areas needed to import raw materials and components and to export finished goods. Cities in China's interior such as Wuhan, Chongqing and Chengdu where transportation links are not as well developed, on the other hand, have not kept pace. In 1995, for example, these three cities together attracted just over US$1 billion in foreign direct investment - only one-third of what Shanghai garnered in the same year.
"These three cities have excellent airports, among China's top 10 in terms of capacity," added Hallford. "Unfortunately, their international connections are limited."
Improving air transportation links to China's interior offers a faster way to build the country's infrastructure, as air transportation capacity can be added much more quickly and economically than building land-based methods such as roads and rail lines. Moreover, air transportation tends to attract high-end investment, in areas such as technology and other higher value-added manufacturing.
Hallford pointed out that, over the past 25 years, the relative value of goods transported by cargo ships has gone down, while the value of goods moved by air has increased steadily. Even though the tonnage transported on airplanes is only about two per cent of all tonnage moved worldwide, it represents approximately 40 per cent of the value of all global trade.
FedEx currently serves more than 30 countries and territories in the Asia Pacific market with approximately 5,000 employees. The company provides the most extensive trans-Pacific airlift of any major competitor. Operating its own wide-bodied MD-11, DC-10 and A310 aircraft, FedEx offers over 260 flights per week to the following locations: Bangkok, Beijing, Cebu, Hong Kong, Jakarta, Kaohsiung, Kuala Lumpur, Manila, Osaka, Penang, Seoul, Shanghai, Singapore, Subic Bay, Taipei, and Tokyo, as well as destinations in the U.S.
Federal Express, a subsidiary of transportation powerhouse FDX Corporation, connects areas that generate 90 per cent of the world's gross domestic product in 24 to 48 hours with door-to-door, customs-cleared service and a money-back guarantee. The company's unmatched air route authorities and infrastructure make it the world's largest express transportation company, providing fast, reliable and time-definite transportation of more than 3 million items in 211 countries each working day. FedEx and has more than 141,000 employees, 43,500 drop-off locations, 610 aircraft and 40,500 vehicles in its integrated global network. The company maintains electronic connections with more than a million customers via FedEx PowerShip®, FedEx Ship®, and FedEx interNetShipSM. Federal Express reported revenues of US$11.5 billion for its fiscal year ended May 31, 1997.
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