[photopress:ups_to_China_parcels.jpg,full,alignright]United Parcel Service, the world’s largest package-delivery company, will spend an initial $20 million to build a new hub in Shanghai to raise the level of its air deliveries in China. It has already done a lot but it has to keep adding if it wants to remain the world’s biggest. There are several competitors snapping at its heels and this is an inevitable move.
The hub will be at Shanghai Pudong International Airport and should start operations next year. It will be serving a logistics market that grew 14% last year. UPS has invested $600 million in China in the past five years and now ships to more than 330 cities in the country with 4,500 employees.
Ken Torok, president of UPS Asia Pacific, said, ‘We will continue to make appropriate investment in China to meet our customers’ demand. This new international air hub is a critical milestone in our goal to maximize our air network infrastructure in this country.’
The company, based in Atlanta, flies Boeing MD-11s and 747s to China and plans to add more 747s. The hub will be serviced by eight 747-400s. The new hub is designed to handle 17,000 items an hour by 2012, in a 96,000-square-meter facility with plans for ‘rapid expansion’. The hub could employ more than 1,000 people by 2010.
Source: International Herald Tribune
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