Ian Silverton: "FedEx strengthens its network in Spain with key investments to boost international trade and e-commerce"

 

 

FedEx is one of the world's largest express transportation companies, connecting people and opportunities in more than 220 countries and territories. With an extensive global air and road network, and a strong presence in Europe since 1984, the company manages millones of daily packages, facilitating international trade and offering logistics solutions adapted to various sectors, including the growing market of e-commerce.

 

To delve deeper into the strategy and operations of FedEx In the Iberian Peninsula, we interviewed Ian Silverton, Managing Director Ground Operations for Spain and PortugalWith over 30 years of experience in logistics operations management, Silverton oversees the operation and expansion of the company's ground network in a region key to connect Europe and facilitate local companies' access to global markets.

 

FedEx connects more than 99% of the world's GDP and handles an average of nearly 17 million packages daily. How has the company's presence in Europe, and in Spain in particular, evolved in recent years?

 

Ian Silverton.- We have expanded significantly our presence in Europe in recent years, thus demonstrating our commitment to improving our logistics network across the continent. Currently, FedEx It has 27 land hubs in Europe that connect 45 countries daily, three main air hubs that serve 69 airports, and more than 500 pick-up and drop-off stations.

 

FedEx has made significant investments to increase the capacity, speed, and efficiency of our air, ground, and delivery networks. This includes the incorporation of new technology and equipment in several European countries, as well as the expansion and modernization of facilities in countries such as Germany, France, Poland, the United Kingdom, the Czech Republic, Switzerland, and Spain, among others.

 

A prominent example is the headquarters of Roissy-Charles-de-Gaulle in Paris, Which is the principal European center of FedExSince its founding in 1999, we have invested more than €600 million in this facility, which covers 72.000 square meters and features advanced equipment and automation. We also plan to open a new global air traffic hub at Istanbul Airport, recognizing its growing importance as a cargo hub.

 

Our European road network is one of the more extensive and faster Europe. It connects 45 countries and handles 1,3 million international shipments per week. Recent investments include €125 million in road transport hubs located in Duiven (Netherlands) and Novara (Italy). These hubs are among the most technologically advanced in our network and are strategically located in the 'Blue Banana', a trade and economic corridor stretching from northwest England to northern Italy.

 

In Spain, FedEx It has five air hubs in Barcelona, ​​Madrid, Seville, Valencia and Vitoria, as well as two land hubs in Madrid and Barcelona, ​​and 26 stations nationwide.

 

We recently opened our renovated Gateway at Madrid Barajas Airport, which includes 3.500 square meters of warehouse space and 2.250 square meters of offices. In addition, we have opened a state-of-the-art station in Malaga, with 3.244 square meters of warehouse space and 300 square meters of modern offices. We will also soon open a modern station in Bilbao, with a total area of ​​3.100 square meters.

 

These developments underline the strategic efforts of FedEx to improve our logistics capacity in Europe and Spain, guaranteeing efficient and reliable services to our customers.

 

 

Madrid-Barajas, Malaga, and soon Bilbao. What is the significance of these investments in the context of the company's growth in Spain?

 

ES.- These investments underline the firm commitment de FedEx with Spain and represent a strategic decision to meet the growing demand for logistics and e-commerce services. By improving our infrastructure in key locations such as Madrid-Barajas, Malaga and the future installation in Bilbao, FedEx is better positioned to support Spanish companies in both the national and international markets.

 

El Madrid-Barajas Gateway es especially important Thanks to its strategic location, which significantly facilitates the expansion of Spanish companies. This facility alone can handle a large volume of imports and exports, improving the reliability and efficiency of our operations.

 

Likewise, the investment in the modern installation of Malaga and the significant expansion in Bilbao They demonstrate our commitment to driving service efficiency and regional growth. These improvements not only benefit our operational capacity but also expand our presence, allowing us to better meet our customers' demands and support their growth aspirations.

 

How have these stations been designed to improve operational efficiency and customer experience?

 

ES.- We designed meticulously of our Madrid-Barajas Gateway, And the Malaga and Bilbao stations to optimize both operational efficiency and customer experience.

 

En MadridOur main warehouse can handle 3.600 packages imported per hour and 450 packages exported per hour, utilizing X-ray sorting technology. We also handle 1.800 packages per hour for pre-inspected shipment transfers. We have set up a dedicated area with 17 docks for trailers, trucks, and vans, facilitating efficient loading and unloading of shipments. We can also securely store up to 3.300 parts and 99 pallets, increasing our handling capacity and efficiency.

 

Installation in Malaga It has the capacity to process up to 1.500 packages per hour and is equipped with 29 loading docks, seven of which are specifically designed for trailers, trucks, and vans. This allows us to optimize the processing of large shipments, improving efficiency both in the warehouse and on our distribution routes.

 

En BilbaoThe new facility has increased its operating space by more than 70%. It will now be able to handle up to 1.500 packages per hour and has 27 loading docks, 20 more than the previous facility, streamlining shipment processing and strengthening our competitive edge.

 

These improvements represent a significant investment in our operational capacity. They allow us to better meet our customers' needs and enhance our service offering, ensuring timely and efficient shipment management.

 

What role will the Bilbao station play within the FedEx network on the Iberian Peninsula?

 

ES.- Equipped with an advanced infrastructure, the Bilbao station will duplicar the sorting capacity of our previous facility in the area, handling up to 1500 packages per hour. It has 27 loading docks, twenty more than the previous facility, which will facilitate more efficient shipment processing, improving both capacity and productivity.

 

This new investment underscores our commitment to strengthening our operational capabilities and improving our service offerings for our customers, thereby supporting their international growth and logistics needs.

 

The presence of FedEx In the Basque Country, this facility is further consolidated, adding to the existing stations in Vitoria and San Sebastián, and the Vitoria air gateway, which guarantees immediate connectivity with Europe and America. Together, these facilities offer a combined sorting capacity of up to 6.000 packages per hour, allowing FedEx better meet the growing demand in the region.

 

FedEx has redesigned its global air network. What role does the Madrid-Barajas Gateway play in this structure?

 

IS.- FedEx operates the international air cargo network biggest in the world, with hundreds of unique international flight segments per week and serving more than 220 countries and territories worldwide.

 

To adapt to the dynamic changes in the market, with volume fluctuations throughout the year conditioned by multiple external factors, we have implemented a new model in our air network, with the aim of assuming the rapid growth of the e-commerce, air cargo volumes and the shift towards less urgent services.

 

This model consists of three distinct segments. The purple segment It is the highest priority volume, delivered only through the fleet owned by FedEx and is classified into critical moments. The orange segment, which also uses aircraft FedEx, but goods are sorted outside of priority windows, making it primarily suitable for cargo shipments. white segment Take advantage of the global network of partner airlines of FedEx, providing flexibility and more point-to-point connections for less urgent parcel shipments and e-commerce shipments.

 

Thanks to its Gateway in Madrid-Barajas, Spain plays a role key on the network of FedExWe have implemented outbound and inbound flows with several Latin American (LAC) markets, such as Argentina, Brazil, Colombia, Chile, Mexico, and the United States, which has allowed Madrid to become a global transit hub. We are exploring and gradually adding more flows with commercially relevant countries in LAC and Asia Pacific (APAC).

 

This development represents a Important milestone, as it improves the connectivity of our intercontinental air transport and our deferred flights with our extensive global and European road networks. This integration creates a profitable ground-air-ground operating model, boosting the competitiveness of Spanish companies in foreign trade by offering more efficient and reliable logistics solutions.

 

 

You mentioned exploring new routes with Asia Pacific. Which markets are being prioritized, and what is your expansion plan for this region?

 

ES.- The region Asia Pacific (APAC) continues to emerge as a center of economic opportunity, with rapid growth in major economies such as China and Japan, and in developing markets such as Vietnam, Thailand, and Indonesia. International trade drives much of this growth, as Asia Pacific continues to expand its role as a important global production centerCompanies are increasingly turning to countries like Vietnam for manufacturing services, especially in the technology sector.

 

FedEx plays a important role as a trade facilitator throughout the region through an air and ground network spanning 43 countries and territories in Asia-Pacific. The company has its Asia-Pacific air hub at Guangzhou Baiyun International Airport (China), and sub-regional hubs at Kansai International Airport (Osaka, Japan), Changi International Airport (Singapore), and Pudong International Airport (Shanghai, China), providing rapid transit times within the region and between Asia and the rest of the world.

 

Asia-Europe, as one of the world's most important trade routes, will be where major economies will converge in the coming years. Meeting the demand for capacity is crucial. crucial, along with service improvements such as extended collection cut-off times, to better support the on-demand economy figure.

 

With 12 daily flights of FedEx Between Europe, the US and Asia Pacific, we are well prepared to serve our customers.

 

E-commerce continues to boom and represents a logistical challenge. How is FedEx's ability to meet the growing demand for B2C and B2B shipments evolving? Are there plans to expand the offering of personalized services for small and medium-sized businesses in Spain?

 

ES.- Our clients are in the center of our operations. Companies from all over the world, including European ones, now have access to the portfolio More complete we've ever offered. We're optimizing our services with a modernized airline network utilizing larger, more fuel-efficient aircraft. Our transatlantic overnight delivery capabilities connect 90% of Europe to major U.S. business centers, providing flexible delivery times for global shipments.

 

For e-commerce, we offer international shipping services with a fixed date, offering a balance between speed and cost-effectiveness. We also offer a specialised Regional freight transport to and from 22 countries for less urgent packages. We are enhancing our value proposition by offering exceptional service, supported by a differentiated offering and a technological ecosystem in constant evolutionOur growth objectives are focused on strategic segments such as B2B in the healthcare and automotive sectors, e-commerce domestic in the United States, global air transport and the European market.

 

The European parcel delivery market, valued at approximately $130 billion, is expected to continue growing. The majority of our revenue in Europe comes from B2B. FedEx moves goods worth more than $2 trillion annually, connecting customers to local, regional, and international markets.

 

small and medium-sized enterprises (SMEs) constitute 90% of the supply chain of FedExAlthough e-commerce has normalized since the pandemic, it is still a strong growth engine, especially in cross-border transactions, which are expected to grow by 20% to 25% annually until 2032.

 

A challenge key is establishing a global supply chain and managing regulatory complexities. We serve both B2B and B2C markets. We've observed a shift toward more B2C shipments in Europe, which began before the pandemic and accelerated during it. To adapt, we've adjusted our air, ground, and last-mile networks. Additionally, we've enhanced our e-commerce capabilities by offering convenient delivery options, such as rerouting packages to over 40.000 pickup points across Europe, providing estimated delivery times, and introducing image proof of delivery for residential deliveries that don't require a signature.

 

As e-commerce continues to drive market growth, we are well positioned to serve both B2B and B2C customers with our comprehensive portfolio of services, from parcel delivery to freight forwarding.

 

What is FedEx's vision for the future of logistics in Spain and Europe, and how is it adapting to new trends in e-commerce and international trade?

 

ES.- Over the past decade, the logistics sector has evolved significantly. Previously, the focus was on speed of service and cost. Today, it encompasses much more. The size and scale of the logistics network FedEx and the millions of packages that transit it daily provide us with a comprehensive view of global supply chains and emerging trends, identifying patterns that allow us to offer more targeted and improved services through new technologies.

 

La innovation, the digitalization and visibility of the supply chain, the last mile delivery and sustainability These are some of the medium and long-term logistics trends that we must take into account.

 

In recent years, the global landscape has become more complejo, with overburdened supply chains and challenging global trade systems. Despite this uncertainty, our mission in FedEx has never been clearerCompanies need a resilient, reliable, and flexible logistics partner to cope with these changes.

 

Our integrated European network and comprehensive portfolio offer give businesses the reliability and flexibility to thrive and manage their customer relationships in a changing environment. Our connection to the world's largest air cargo network, supported by our experience and advanced technology, positions us uniquely. optimum to help businesses of all sizes achieve their ambitions.

 

We are committed to continuing our global transformation to create a more flexible, efficient, and intelligent supply chain, better anticipating and meeting market needs.

 

 

IS.- What measures is FedEx implementing in Spain to reduce its carbon footprint and improve energy efficiency?

 

In 2024, we are expanding our sustainability strategy to encompass actions integrals aimed at achieving the carbon neutrality in our own operations, and also to support the transition of the transport and logistics sector as a whole.

 

Our new strategic approach focuses on minimize our operational emissions, while working to scale in a way collaborative manner. future solutions and support carbon reduction.

 

We continue to invest in renewable energy to supply our facilities, in the electrification of our fleet collection and delivery, and in the research on the kidnapping carbon to promote natural capture solutions for adoption across the transportation industry.

 

We have introduced Power Plants in several cities such as Madrid and Barcelona, ​​facilitating low- and zero-emission pickup and delivery, helping us move toward more sustainable operations. These stations are equipped with charging points powered by certified renewable energy sources, and a dynamic energy management system ensures our entire fleet of electric vehicles can charge efficiently overnight.

 

In addition, we are exploring modes of transportation alternative for last-mile deliveries. In Spain and other markets such as Austria, Denmark, France, Italy, the Netherlands, Türkiye, and the United Kingdom, we have begun implementing cargo bikes for deliveries in the city center.

 

The electrification of our vehicle fleet increases our energy demand, which is why we are investing in renewable energy and efficient energy management. Our goal is to expand the generation and procurement of on-site renewable energy for our facilities. For example, our Madrid-Barajas Gateway It already features solar panels, similar to those already in operation at some of our major European hubs, such as Charles de Gaulle in Paris and Cologne in Germany. It is equipped with 156 panels covering an area of ​​339 m² and producing approximately 95 megawatt-hours of electricity per year, covering approximately 20% of the facility's energy needs. Other sustainable features include LED lighting and a smart water management system to reduce water usage.

 

What advice would you give to SMEs that want to internationalize or are already operating abroad?

 

ES.- My recommendation for SMEs that are looking to internationalize or that already operate abroad is that they Take advantage of the experience of companies specialized in the sectorWe have the knowledge, experience, and network necessary; we move 18 million packages daily to more than 220 different countries and territories. We are experts in our work, backed by an unrivaled global network and a strong network in Europe.

Therefore, I advise SMEs to turn to companies like FedExWe have the knowledge, systems, and information we can share to ensure you clearly understand the specific requirements based on the product you sell and the shipping destination, ensuring the fastest and most reliable process possible.

Ultimately, this is crucial for SMEs, since their end customers expect to receive the merchandise safely and on time.