China grants FedEx, UPS operating licenses for some Chinese cities

Tue Sep 11, 2012 9:04am IST

A UPS truck is parked near Time's Square in New York, October 22, 2009. REUTERS/Brendan McDermid

A UPS truck is parked near Time's Square in New York, October 22, 2009.

Credit: Reuters/Brendan McDermid

Stocks

   

(Reuters) - Package delivery companies FedEx Corp (FDX.N) and United Parcel Service Inc (UPS.N) have received approval to provide express-package services in some cities of China on their own, the country's State Postal Bureau (SPB) said on its website last week.

The approval gives FedEx access to eight cities while UPS was given access to five cities, the SPB said.

The approval of the licenses was first reported by the Wall Street Journal, which also said that FedEx already provides services in Chinese cities through joint ventures with local companies while UPS doesn't have partnerships with Chinese companies.

The authorization comes four months after Chinese regulators approved a $1.6 billion initial public offering by state-owned China Postal Express & Logistics, one of the largest courier companies in the Chinese domestic market.

According to the government body, FedEx can now operate in the cities of Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Dalian, Zhengzhou and Chengdu.

"FedEx is committed to China and remains focused on growing our business together with our customers," FedEx spokeswoman Shea Leordeanu said in an email.

UPS was given a license for the cities of Shanghai, Guangzhou, Shenzhen, Tianjin and Xi'an.

"We are pleased to receive a license to operate domestic express service in five strategic cities in China," UPS spokeswoman Kristen Petrella said.

(Reporting by Siddharth Cavale and Tej Sapru in Bangalore; Editing by Muralikumar Anantharaman)

Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

Public Health

REUTERS SHOWCASE

Cost Cutting

Cost Cutting

PM Narendra Modi boots officials out of the first class cabin  Full Article 

Airtel Profit Jumps

Airtel Profit Jumps

Bharti Q2 net profit more than doubles   Full Article 

Leisure Riding

Leisure Riding

Harley-Davidson woos affluent young Indians with bike culture  Full Article 

Maruti Earnings

Maruti Earnings

Maruti Suzuki net profit up 29 percent, beats estimates.  Full Article 

ICICI Results

ICICI Results

ICICI Bank Q2 profit up 15 percent, beats estimates.  Full Article 

Moody's on India

Moody's on India

Moody's welcomes India's policy steps, but wants to see more.  Full Article 

End Of QE

End Of QE

U.S. Fed ends bond buying, exhibits confidence in U.S. recovery.  Full Article 

Cook Comes Out

Cook Comes Out

Apple's Cook: "I'm proud to be gay"  Full Article 

Refining Margins

Refining Margins

BPCL aims to double refining margins with refinery expansion.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device  Full Coverage