FedEx Express is still expecting double-digit growth this year from its operations in the MiddleEast, implying no job cuts in the region, the operator’s top executive for the region told local
media.Despite easing economies in the Middle East, FedEx is still optimistic that a turnaround inthe second half of the year when inventories are restocked will sustain the company’s growth of2008, Hamdi Osman, Senior Vice-President of FedEx Middle East, Indian Subcontinent and Africa,said. “We have always had a double-digit growth year-on-year, that won’t change in 2009,” he said.
“We are anticipating the business to really pick up again towards the end of the year, whichis why we have not cut back on our operations, or cancelled plans to expand the business,” heexplained. The Middle East has been the best performing region for FedEx in recent months, comparedto other parts of the world. “Looking at our operations, the Middle East and Africa continue toperform better. The Subcontinent has been hit but it remains promising,” Osman was cited as saying.
Osman explained that due to the region’s robust performance, the move by FedEx to cut jobsacross its global network as part of a major cost cutting programme will have no impact on itsstaff and operations in the Middle East. “Until now, there has not been any necessity to trim jobsin this region. We continue to grow ahead of the other regions and the policies we have adopted forour operations have proved productive and have prepared us for any challenges in the industry,” hecommented.
However, he pointed out that while the industry has seen a year-on-year average growth of 12%for inbound volumes for the regional express service, this year’s growth projections stand at anaverage of 5% due to a drop in demand. There is a clear switch from air-based to road-basedtransportation as customers seek logistics cost savings, he noted.
FedEx Express has expanded its operations in the Middle East in recent years. It currentlyhas about 13 weekly long-haul MD-11 flights between Europe and Asia which stop off in throughDubai, and provides regional air and road connections for local distribution and deliveries.
