Strategic Location will Enable Shorter Transit Time Between Burgeoning Asian Trade Lanes
SHENZHEN, China, Oct. 24, 2008 - UPS (NYSE:UPS) today held a
groundbreaking ceremony to begin construction of its intra-Asia hub at Shenzhen
International Airport in China. In attendance at the ceremony were Mayor Xu
Zong-heng and Vice Mayor Zhang Si-ping from the Shenzhen Municipal Government,
Dr. Huang Chuanqi, President of Shenzhen Airport (Group) Co., Ltd, and UPS
executives including Daniel Brutto, President of UPS International; Derek
Woodward, President of UPS Asia Pacific Region, Richard Loi, Head of China and
Senior Vice President of UPS Asia Pacific Region, and K.M. Liu, Senior Vice
President - Transportation Group, UPS Asia Pacific Region.
The UPS Shenzhen Intra-Asia hub will replace UPS's current intra-Asia hub
located at the former Clark Air Base in the Philippines and serve as UPS's
primary transit hub in Asia. Pending government approval, the facility will open
in 2010.
"There are enormous growth opportunities in this dynamic region," said Daniel
Brutto, President of UPS International. "The strategic location of UPS's
Shenzhen Intra-Asia Hub will further strengthen our position in Asia by reducing
shipment transit times for our customers by at least one business day."
The UPS Shenzhen Intra-Asia hub will be built on a land area of 89,000 square
metres (958,000 square feet) and include a dedicated 150,000-square-metre (1.6
million square feet) ramp provided by Shenzhen Airport for ramp handling
operations, an express customs handling unit, sorting facilities and cargo
handling and cargo build-up areas. The sorting capacity is projected to reach
18,000 pieces per hour with the flexibility to expand to 36,000 pieces per hour.
The hub will initially employ approximately 400 people and represents an
investment of US$180 million (RMB1.24 billion). The hub will operate 24 hours a
day, seven days a week.
"The hub is a strong testament of UPS's commitment to China and underscores
our promise to support our customers' growth in this fast growing region," said
Derek Woodward, President of UPS Asia Pacific Region. "We are extremely grateful
to the Shenzhen Municipal Government, CAAC, Custom, Entry-Exit Inspection and
Quarantine Bureau, and Shenzhen Airport for their strong support and
cooperation."
Under China's Eleventh Five-Year plan, Shenzhen International Airport aims to
be the major cargo airport in southern China. The establishment of the UPS
Shenzhen Intra-Asia Hub echoes this objective. The hub will also help stimulate
the economic development of Shenzhen by creating more job opportunities and
further boosting the trade volume in the Pearl River Delta where Shenzhen is
centered. This is especially meaningful for the development of the high-tech
industry zone in the region, and we expect that will help improve the overall
industry structure and attract further foreign investment here in Shenzhen.
Mayor Xu Zong-heng commented that: "We are very happy that UPS is to
establish its intra-Asia air hub in Shenzhen. As The Pearl River Delta plays a
significant role in the development of China economy and is viewed as a core
location for future economy integration across Asia, this initiative undoubtedly
marked a step further in our efforts to achieve these goals. We welcome
multinational companies like UPS to invest in Shenzhen and set up their
facilities here to further boost the economy in this region."
According to Dr. Huang Chuanqi, President of Shenzhen Airport (Group) Co.
Ltd, Shenzhen International Airport aims to be among the top 30 international
airports globally in terms of cargo traffic by 2010, and to be the major cargo
airport in southern China by 2015. "Shenzhen International Airport offers a well
established air network that connects 18 countries and 28 cities worldwide with
139 air lanes," said Dr. Huang. "With strong demand for cargo shipments, we are
pleased to establish a partnership with a logistics giant such as UPS and
support them in establishing an air hub here as we believe Shenzhen airport is
well positioned to promote intra-Asia trade both economically and
geographically."
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