Federal Express Corporation (FedEx) will establish a direct presence in Nigeria, and have its own business operations by December 1, 2022.
This is according to a notification posted on the Nigerian Exchange by Red Star Express Plc (NGX: REDSTAREX), a FedEX License in Nigeria since 1994.
Red Star Express wrote to notify the Nigerian Exchange Limited and the general public of a change in the operating business Model between it and FedEx effective December 1, 2022.
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According to the notification seen by Investogist, Red Star Express which has been a Licensee of FedEx in Nigeria since 1994 under the Global Service Participant (GSP) Model will transition to a National Network Provider (NNP) Model.
Under the NNP Model, FedEx will establish a direct presence in Nigeria and will have its own business operations. Red Star Express will continue to provide pick-up delivery, and customs clearance services to FedEx on an exclusive basis, on the terms set out in the NNP Agreement entered into between the parties.
The Board and Management of Red Star Express assured it’s Shareholders and Stakeholders that the change has greater potentials for the company and that they do not expect any drop in volumes or diminution in the value of the Company, as a result of this change.
About Red Star Express Plc
Red Star Express Plc was incorporated as a Private Limited Company on 10th of July 1992 under the name, Red Star Express Nigeria Limited and commenced business operations on 12th of October 1992.
The Company was subsequently converted to a Public Company in July 2007 and had its shares listed on the Nigerian Stock Exchange on November 14, 2007.
The Company has three (3) subsidiaries; Red Star Logistics Limited, Red Star Freight Limited and Red Star Support Services
Limited.
Red Star Express Plc provides a portfolio of full logistic solutions in Nigeria which includes, but not limited to International and Domestic express delivery, Freight Forwarding, Integrated Logistics Solutions, Information and Document Management Solutions, Warehousing, Packaging Services, Food Delivery, Agriculture Logistics and E-commerce Solutions.
About FedEx
The Company was founded in Little Rock, Arkansas in 1971 as Federal Express Corporation by Frederick W. Smith, a graduate of Yale University. He drew up the company’s concept in a term paper at Yale, in which he called for a system specifically designed for urgent deliveries.
Federal Express began operations in Memphis, Tennessee on April 17, 1973, with 389 team members. That night, 14 aircraft delivered 186 packages to 25 U.S. cities.
On October 2, 1997, FedEx reorganized as a holding company, FDX Corporation, a Delaware corporation.
In January 2000, FDX Corporation changed its name to FedEx Corporation and re-branded all of its subsidiaries.
Federal Express Corporation’s initial public offering was on April 12, 1978 at $24.00 per share. Federal Express began trading on the NYSE on December 28, 1978 under the ticker symbol FDX. The ticker symbol FDX is now used by FedEx Corp., the holding company for Federal Express Corp. (FedEx Express), FedEx Ground, FedEx Freight and FedEx Services.
Nnamdi Maduakor is a Writer, Investor and Entrepreneur
