United Parcel Service (UPS.NYSE) will likely submit an application to China’s State Post Bureau as early as this week as it moves ahead with plans to establish a domestic delivery service in China, the Financial Times reported. Dan Brutto, president of UPS International, said China’s domestic market could be as big as 5 million packages a day. That easily dwarf the company’s 1.2 million deliveries within foreign countries in 2009, which brought in US$2.1 billion in revenue. UPS will seek to establish a next-day service, as well as two- and three-day services further down the line. While international delivery companies have been in China for a while, they have mostly focused on the import-export segment. The domestic market is made up of many smaller companies, and UPS hopes to bring some consolidation and offer a familiar name to many multinational companies already operating in China.
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