PACKAGE delivery companies FedEx Corp. and United Parcel Service Inc. have received approval to provide express-package services in some cities of China on their own, The Wall Street Journal reported yesterday, quoting a statement by the country’s State Postal Bureau (SPB) on its Web site.

The approval gives FedEx access to eight cities while UPS was given access to five cities, the SPB said.

The Wall Street Journal report also said that FedEx already provides services in Chinese cities through joint ventures with local companies while UPS doesn’t have partnerships with Chinese companies.

The authorization comes four months after Chinese regulators approved a US$1.6 billion initial public offering by State-owned China Postal Express and Logistics, one of the largest courier companies in the Chinese domestic market.

According to the government body, FedEx can now operate in the cities of Shanghai, Guangzhou, Shenzhen, Hangzhou, Tianjin, Dalian, Zhengzhou and Chengdu.

“FedEx is committed to China and remains focused on growing our business together with our customers,” FedEx spokeswoman Shea Leordeanu said in an e-mail.

UPS was given a license for the cities of Shanghai, Guangzhou, Shenzhen, Tianjin and Xi’an.

“We are pleased to receive a license to operate domestic express service in five strategic cities in China,” UPS spokeswoman Kristen Petrella said.

Both companies have invested heavily in Chinese hubs for their international business to and from Asia. And though it remains small, the intra-China market for document and package express delivery is expected to grow at 20 percent a year, according to the prospectus for the planned offering by China Postal Express and Logistics Co.

(SD-Agencies)