FedEx completes acquisition of Genco
February 5, 2015
FedEx has completed the acquisition of Genco Distribution System, one of the largest third-party logistics providers in North America. The acquisition, as announced in December, will let FedEx offer its customers a more comprehensive portfolio of logistics services complementing its existing transportation services.
“We are extremely pleased to welcome Genco teammates to the FedEx family,” said Frederick Smith, chairman and CEO of FedEx. “We believe this acquisition demonstrates our commitment to our customers with enhanced supply chain and logistics offerings, which will also continue to drive growth. We look forward to starting the integration process.”
With the completion of this acquisition, Genco will now operate as a subsidiary of FedEx, and will continue to be led by Todd Peters, chief executive officer. Financials will be reported through the FedEx Ground business segment.
• FedEx Trade Networks, the freight forwarding and customs brokerage arm of FedEx, is broadening its services for trade lanes connecting key destinations in Latin America. The trade lanes include: Germany (Frankfurt) to Mexico (Mexico City and Guadalajara); Germany (Frankfurt) to Brazil (São Paulo and Campinas); Hong Kong to Mexico (Mexico City and Guadalajara); and USA (Dallas) to Mexico (Mexico City, Guadalajara and Monterrey).
“We’re committed to supporting our customers with more shipping options to Latin America to meet their growing business needs,” said John Gazitua, managing director, FedEx Trade Networks, Latin America-Caribbean region. “Mexico and Brazil are two strong examples of key markets for the automotive, aircraft and electronic industries and we are very focused on providing total end-to-end international freight forwarding and greater market access in the area.”
FedEx provides a single point of contact for each of these freight forwarding routes, and selects a carrier based on shipper budget and timeframe, while providing convenient transit times. The company also offers value-added service options, including distribution services and customs brokerage arrangement. Pricing options include airport-to-airport, airport-to-door, door-to-airport and door-to-door, and customers may also take advantage of the track-and-trace options.
The company’s focus on enhancing its services throughout Latin America is further warranted by the numbers. Bilateral trade between Asia-Pacific and the region has grown at an average annual rate of 20 per cent for more than a decade, while trade between the EU and Latin America doubled to approximately $280bn during the past ten years.