China Economic Review
Charting China’s changing economic terrain · Since 1990
UPS opens $125m cargo transit hub in Shanghai
July 19, 2009
UPS has opened an international air hub in Shanghai Pudong International Airport in a bid to get a larger share in China’s fast-growing express and logistics market.The hub, with a total investment of $125 million, is the US courier’s largest international transit facility in Asia and will connect China to its global air network with direct service to US and European destinations.
The opening of the facility is also expected 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 in moving forward.Derek Woodward, president of UPS Asia Pacific region, said the Atlanta-based UPS had an over 10% growth in export business from China and 15% growth in the Asia-to-Europe traffic.
The new facility, covering 35,000 sq m, will be able to sort 17,000 pieces of goods per hour by 2012.
People’s Daily Online reports that DHL and FedEx are also building hubs in China to ensure more efficient air service.
DHL will spend $175 million to build its North Asia express transferring facility in Shanghai, which will be completed in the second half of 2010. FedEx will open its Asia-Pacific hub in Guangzhou in the first half of next year.