UPS seeks to establish domestic China service

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.