FedEx to pull out of Taiwan's industrial centre Kaohsiung

Jul 7, 2007, 11:49 GMT

Taipei - Federal Express Corp. the world's largest air-cargo delivery company, will pull out of Taiwan's industrial centre Kaohsiung later this month due to a decline in business, FedEx and local press said Saturday.

FedEx will operate its last flight out of Kaohsiung International Airport on July 27 and shut its Kaohsiung office on September 8, the China Times reported.

FedEx made the decision to quit Kaohsiung - Taiwan's southern port city, its industrial centre and second-largest city after capital Taipei - because business has been declining every year in recent years, the daily said.

FedEx has been serving Kaohsiung for 12 years, currently operating five weekly cargo flights to the airport. Compared with the peak days, FedEx's business in Kaohsiung has fallen 30 per cent, China Times said.

FedEx (Taiwan) released a statement Saturday confirming its decision to close its Kaohsiung office, saying it is in response to customers' needs and to boost competitiveness.

'FedEx confirms that it will consolidate its Kaohsiung airport operations effective September 8. Since 1990, FedEx has been and will continue to be committed to Taiwan and to grow its business here,' the statement said.

FedEx said the nine staff members in its Kaohsiung office can apply for jobs within the company or receive severance pay.

After ending its operations in Kaohsiung, FedEx will only have 23 weekly flights out of the Taoyuan International Airport near Taipei - 12 to the US, six to Europe and five to Asia.

FedEx is the latest of several largest foreign companies to leave Taiwan due to the island's economic downturn caused mainly by its five-decade ban on direct trade and sea/air links with China.

Kaohsiung itself is a victim of Taiwan's economic decline. The Kaohsiung Harbour used to be the world's third-largest container port, but its ranking has fallen to the sixth place and continues to drop as ports in other countries, especially China, expand.

Taiwan's business sector has urged the government to open air and sea links with China, but the government said the bans must be eased gradually for national security.