FedEx returns to PH, invests $30-M gateway facility in Clark

Published October 6, 2020, 4:27 PM

by Bernie Cahiles-Magkilat

FedEx Express, a subsidiary of the world’s leading logistics company FedEx Corp., on Tuesday unveiled its $30 million gateway facility in Clark, 11 years after it abandoned its regional hub in Subic Freeport for China.

The unveiling of its latest investment marked the company’s 36th year of operation in the Philippines. The new Philippine gateway located on a 17,000 square meter facility in Clark will start commercial operations in April 2021.

Shown (from left ) are: : Gen. Aaron N. Aquino (Ret.), President and CEO of Clark International Airport Corporation; Secretary Arthur P. Tugade, Department of Transportation;Garrick Thompson, FedEx Express Sales Senior Manager;Secretary Vince Dizon, Presidential Adviser on Flagship Programs and Projects; Jake Bingcang, Vice President of Bases Conversion Development Authority; and Ranny Chua, FedEx Express Operations Senior Manager.

According to a company statement, the Clark facility is equipped with state-of-the-art technologies that will increase sorting capabilities to 9,000 documents and parcels per hour. The facility will also have dedicated areas to process large heavyweight freight. Once operational, this investment will bring the total number of team members to more than 800 in Clark alone.

”Moving our Philippines gateway to Clark will enhance our ability to serve customers across the Philippines, given the expansion of Clark International Airport and a 24/7 Customs clearance operation.

Customers in Northern Luzon and Cebu will enjoy an extended cut-off time while deliveries in Northern Luzon will be earlier by two hours on average. FedEx will maintain a facility in Manila to continue serving all customer needs,” said FedEx Express Philippines Managing Director John Peterson.

”The government’s ongoing infrastructure projects will decrease travel time between Northern Luzon, Metro Manila, and Southern Luzon. This move supports the government’s efforts to decongest Metro Manila.” 

 “FedEx has definitely demonstrated the importance of investing in the regions by opening its state-of-the-art gateway facility in Clark. I say that FedEx made the right choice, for the location of this new smart and green metropolis is strategic and booming with potential. The expansion of the company’s operations here in the north will definitely complement the transport infrastructure projects we are building to provide enhanced mobility and connectivity across the country,” said Secretary Arthur Tugade, Department of Transportation.

Vince Dizon, ppresidential adviser on flagship programs and rojects, said Clark is an emerging economic hub in the Philippines. Its  strategic location, improved infrastructure and connectivity, and ease of doing business make it the ideal base in the Philippines for global companies, such as FedEx Express, to expand operations.

  “We’re delighted with FedEx’s investment here at the vibrant Clark civil aviation complex and CIAC is equally committed to sustaining a mutually beneficial partnership toward job creation and continued economic growth in the greater Clark area,” said Aaron Aquino, Clark International Airport Corporation President.

This is the latest in a series of strategic investments that FedEx has made in the Philippines and across Asia-Pacific to enhance service coverage and customer experience in this important region.

 Peterson emphasized, “We are proud to be celebrating our 36th anniversary in the Philippines this year.

This latest investment further reinforces our long-term commitment to our customers and team members in the country.”

FedEx first opened its regional Asian hub in Subic, Zambales, in 1995. After 14 years, however, the company decided to move to Guangzhou.

 In 2018, FedEx refurbished its Philippines headquarters in Makati and equipped it with the latest technologies that aim to enhance collaboration, promote learning, offer flexible working environments, and improve employee mobility.

 In 2017, FedEx invested in two facilities with a combined worth of  $2.15 million. The Philippine IT Center in Bonifacio Global City in Taguig is the third regional software development center for APAC solutions enhancement in the region. Meanwhile, the APAC Trade Facilitation Center in Clark performs clearance preparation work such as data management, profile matching, and other administrative tasks to support APAC markets including Japan and Singapore.

 In 2016, FedEx acquired TNT, expanding its transportation and network assets around the globe.