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Fed Ex to Build New Shipping Hub in China

U.S. shipping giant Fed Ex says it will build a new Asia-Pacific shipping hub in southern China.

Fed Ex chairman Frederick Smith made the announcement Wednesday in Guangzhou, where the new $150 - million facility will be located.

Mr. Smith says around 1,200 people will be employed at the new hub, which will handle up to 24,000 packages a day.

The Guangzhou hub will replace Fed Ex's current operation at Subic Bay, Philippines, which will be phased out when new center opens in December 2008.

The company is predicting that air freight from China to the U.S. will grow an average of 9.6 percent a year over the next 20 years.

Some information for this report provided by AFP, AP and Bloomberg.