UPS has opened an international air hub in Shanghai Pudong International Airport. It took a total investment of $125 million and is the US courier’s largest international transit facility in Asia. It will connect China to its global air network with direct service to US and European destinations.
The opening of the facility is also expected, in fact it it inevitable, to speed up Shanghai’s growth into a leading international air cargo transport center.
While international express and logistics giants are stung by the economic slowdown in the US and Europe, China is playing an increasingly important role to take up the slack and drive their growth.
Atlanta-based UPS reported a 7.4% increase in revenue in the third quarter, but its diluted earnings per share dropped 8.6 %from $1.05 to $0.96 due to the stagnant US economy.
Its international and supply chain businesses demonstrated strength despite a challenging global economic environment.
The new UPS facility, covering 35,000 sq m, will be able to sort 17,000 pieces of goods per hour by 2012.
English People’s Daily Online reports that meanwhile UPS is moving its intra-Asia air hub to Shenzhen from its current location in the Philippines. The new hub will be up and running next yar and involves an estimated investment of $180 million.
DHL and FedEx are also building hubs in China to ensure more efficient air service.