UPS heads off on its own

With restrictions coming off foreign players operating on their own in the logistics industry, United Parcel Service (UPS) is set to become the first foreign independent in the market after announcing it would pay US$100m to end its joint venture with state-owned cargo operator Sinotrans. UPS will operate alone in Qingdao, Tianjin, Shanghai, Guangzhou and Shenzhen, initially and extend services to 23 cities in '05, the company said. UPS said the change would give the company a direct link with its customers for the first time, but added it will use Sinotrans as its agent in cities where it does not have a presence.