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Federal Express, one of the world's top parcel delivery companies, announced yesterday that it plans to create a separate business unit for its mainland operations to be more focused in the market.

The new unit, to be part of the company's Asia-Pacific division, is scheduled to start operation on December 1.

"China continues to be our fastest-growing market and we will continue to invest in it," said David Cunningham, president of FedEx's Asia-Pacific division during a teleconference.

The structural change was also due to the uniqueness of the mainland market in terms of governmental, commercial and legal complexity, the company said in a statement.

FedEx plans to add 100 cities to its mainland network over the next five years, Cunningham said. It currently serves 220 mainland cities, mostly through its joint-venture partners.

It expects its employees on the mainland to increase to 2,000 next year from the current 1,500. "A handful of" staff in Hong Kong would be moved to Shanghai, he said.

The company launched a direct flight from Shenzhen to Anchorage, Alaska last month.

Meanwhile, Hong Kong would remain FedEx's Asia-Pacific headquarters, Cunningham said.

"Hong Kong will play an increasingly important role as a vital link in the company's Asia-Europe and intra-Asia service offerings," he said.

FedEx is adding six flights from Hong Kong and Europe on October 28. It would also start direct flights between Paris and Hong Kong on the same day, with six flights a week.

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