FedEx execs meet with Trump to discuss public-private partnerships

According to Jim Cramer of CNBC, FedEx executives have met with President Donald Trump to discuss a proposal for public-private partnerships.

The US government is pushing for a $1 trillion overhaul of the nation’s infrastructure with the help of private enterprise. Trump has sought to privatise government infrastructure such as the air traffic control system on the basis that this would make airports more efficient.

Industry figures have previously voiced support for renewed, bipartisan interest in improving US infrastructure. Michael L. Ducker of FedEx Freight said it should be a top priority for the new administration.

However, outside of the industry, some have questioned the benefits of public-private partnerships on the basis that the private sector is likely to invest only in what it can make profitable, which does not always align with public needs.

In a statement to CNBC, FedEx stated that they are pleased with the proposed budget, which “lays solid groundwork for infrastructure modernization and an independent, non-governmental air traffic control system that will allow more flights to operate safely in congested air space and at crowded U.S. airports.”

FedEx adds, however, that “it is also essential that the cost accounting going forward reflect airline usage, which is a key indicator for system maintenance and growth.”

FedEx has previously been at odds with President Trump, as the company strongly supported the Trans-Pacific Partnership (TPP) trade agreement. In January, as his first executive order, Trump withdrew the US from negotiations.