FedEx Newsroom

FedEx Newsroom

FedEx Express Responds to Growth of Brazil, South Cone With Greater Access For Local Markets

August 21, 2007

SAO PAULO, Aug. 21,2007—FedEx Express, the world’s largest express transportation and global logistics solutions provider, announced this week the expansion of its cargo transportation capacity between Brazil and the U.S. and within the Southern Cone region of South America to meet the growing market demand in these areas.

This initiative reinforces the company’s commitment to strengthen local economies through greater access to the global marketplace, leveraging its network that connects more than 220 countries and territories.

Beginning this month, flights between the Viracopos Airport (Campinas, state of São Paulo, Brazil) and the FedEx Express Superhub in Memphis, Tenn., will now be served by an MD-11 aircraft from Monday through Thursday and on Saturday, increasing the cargo lift capacity by approximately 10 percent.  The route was previously served by a smaller MD-10.  The upgrade to an MD-11 will allow FedEx Express to expand its overall capacity by 36 tons per week for a total capacity of 385 tons.

 “The growing demand and the significance of FedEx Express activities in the Brazilian market made this capacity expansion a necessity," said Carlos Ienne, managing director of operations for the region.  “We are very pleased with this expansion because it enables us to connect our customers to the global economy in a fast and efficient manner," he adds.

FedEx Express is also expanding its presence in Latin America with new operations resulting from a cooperative services agreement with VARIGLOG, the largest domestic logistics company in Brazil.   Initially, the two companies intend to cooperate pursuant to an interline arrangement, whereby they will transfer cargo to and from each other’s flights, but the flights will continue to be marketed exclusively under the operating carrier’s designator code.

Upon receipt of all necessary government approvals, FedEx Express and VARIGLOG intend to implement code-share and blocked space agreements, which will enhance their level of cooperation on these services, whereby each company will allow the other to use a dedicated block of space on its aircraft operating within the Southern Cone region of South America (Argentina, Chile, and Brazil), tripling the cargo capacity available to service the area. 

The additional capacity will allow FedEx to offer FedEx International Priority Freight® service between Argentina, Chile and Brazil, as well as into and out of Argentina and Chile.  FedEx International Priority Freight service is a reliable, time-definite service for palletized freight shipments.  

Between Monday and Thursday, FedEx Express can utilize cargo space in one of the Boeing 757 aircraft in VARIGLOG’s recently-acquired fleet.  On Saturdays, VARIGLOG will have access to cargo space on FedEx’s MD11 aircraft.

The result of the agreement includes the development of internal markets in the Southern Cone region, improvement of the service level, and the enhancement of operations in Argentina and Chile with the offer of an earlier service to Santiago.  

 “This agreement will not only benefit the two companies, but also the markets involved, whose business transactions  by industries such as auto parts, automotive, wine, leather and others are maturing rapidly," said Ienne. “We not only want to contribute to the growth of the business trade between Brazil, Chile, Argentina and Uruguay, but also to connect these markets to the world.”

“For VARIGLOG, the recent agreement with FedEx Express, a pioneer in this industry, means recognition of the high level of quality and capacity of our services,” said João Luis Bernes de Sousa, president of VARIGLOG.

About FedEx Express

FedEx Express is the world’s largest express transportation company, providing fast and reliable delivery to every U.S. address and to more than 220 countries and territories. FedEx Express uses a global air-and-ground network to speed delivery of time-sensitive shipments, by a definite time and date with a money-back guarantee.  FedEx Express Latin America & Caribbean Division services more than 50 countries and territories throughout Latin America and the Caribbean and employs more than 3,400 people committed to total customer satisfaction each business day. 

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services.  With annual revenues of $35 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand.  Consistently ranked among the world’s most admired and trusted employers, FedEx inspires its more than 280,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities.  For more information, visit http://news.van.fedex.com.

About VARIGLOG

VARILOG, Brazil’s largest logistics company, began operations on Aug. 25, 2000, after more than 70 years of experience in the air transportation industry as the cargo transportation unit of the company formerly known as Varig.

With an innovative business model in Latin America that specializes in door-to-door delivery, VARIGLOG has the expertise to transport all types of cargo such as: animals, perishables, hazardous materials, valuables, equipment for shows and events, pharmaceutical products, electronics equipment, works of art, vehicles, computers and others.  

VARIGLOG’s current fleet is comprised of 15 long-haul aircraft, including two MD-11s, four DC-10s, six B-757-200s (another two will be delivered soon) and three B727-200s and nine short-haul aircraft (Cessnas and Bandeirantes), for a total of 24 freight-carrying airplanes.  These cargo planes, together with more than 90 road routes in Brazil, constitute the largest air network of any private express transportation company in Brazil.

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