Hub in Shenzhen will Provide Intra-Asia Service and Cut Transit Time
SINGAPORE, October 28, 2008 - To mark the 20th anniversary
of UPS's presence in Asia, today the Shenzhen Municipal Government and UPS held
a groundbreaking ceremony for UPS's planned intra-Asia hub. The UPS Shenzhen
Intra-Asia Hub, representing a US$ 180 million investment, is targeted to open
in early 2010, pending government approvals.
"The hub is a strong testament of UPS's commitment to support our customers'
growth in the intra-Asia region," said Derek Woodward, President of UPS Asia
Pacific Region. "Despite the global economic slowdown, we are confident that the
economies in China and the rest of Asia will continue to grow. With the movement
of our intra-Asia hub to Shenzhen, UPS is well positioned to better serve our
customers within China and the region."
By relocating its intra-Asia hub in Shenzhen, UPS will reduce its shipment
transit times across Asia by at least one business day, significantly enhancing
its service to customers.
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 (RMB1.28
billion). The hub will operate 24 hours a day, seven days a week.
Twenty Years in Asia
UPS moved into Asia as part of its
rapid international expansion strategy in 1988. With the acquisition of Asian
Courier Service, UPS immediately established offices in Hong Kong, Malaysia,
Singapore, Taiwan and Thailand. Simultaneously, UPS established service
agreements with multiple service providers in Europe and Asia, adding 19
countries to the UPS delivery network - UPS's single largest international
expansion at that time.
Mary Yeo, managing director of UPS Singapore, who has been with UPS since its
inception in Asia Pacific, says "During the past 20 years, I have seen UPS grow
in strength in Asia. Prior to its acquisition by UPS in 1988, Asian Courier
System consisted of 200 people spread across Malaysia, Hong Kong, Singapore,
Taiwan and Thailand. Today, UPS has extended its reach across Asia growing its
employee base to over 13,000 and establishing facilities in each country -
providing superb infrastructure, trademark operational efficiency and a world
class service portfolio."
"Previously occupying a mere 600 square-feet office space in Singapore, UPS
Singapore currently operates out of six facilities. This includes UPS House, the
first UPS-built and owned facility in Singapore and Asia where the UPS Asia
Pacific regional headquarters is based, and a 425,000 square-foot distribution
and logistics facility at the Airport Logistics Park of Singapore (ALPS)."
"Over the years, UPS has proven itself to be a top player in the logistics
and supply chain scene, working consistently to meet the service demands of our
customers and to move commerce in and out of Asia, the world's fastest growing
region," said Ms Yeo.
Also in 1988, UPS commenced operations in China through an agreement with
Sinotrans. In April 2001, just two months after the United States Department of
Transportation awarded UPS the rights to operate direct air service from the
U.S. to China, UPS launched direct flights to Beijing and Shanghai. By the end
of 2004, UPS was operating 18 weekly flights between the U.S. and China,
providing international express services covering over 200 Chinese cities. In
2005, UPS took direct control of its international express operations from
Sinotrans and subsequently embarked on a rapid expansion throughout the
country.
Today, UPS serves more than 40 countries and territories within Asia Pacific,
with over 14,000 employees and 267 operating facilities.
Key UPS milestones in Asia Pacific include:
- 1988 Established offices in Hong Kong, Malaysia, Singapore, Taiwan and
Thailand through an acquisition of Asian Courier Service
- Commenced operations in China through an agreement with Sinotrans
- 1995 Established UPS Logistics in Asia Pacific
- 1996 Expanded operations in Korea through a joint venture with The Korea
Express Co.
- 1997 Expanded operations in Philippines through a joint venture with
Delbros, Inc.
- 1998 Expanded operations in Indonesia and New Zealand through joint ventures
with PT Cardig Air and Fliway respectively
- 2000 Established new express joint venture in India with Jetair Limited
- 2001 Launched direct flights to Shanghai and Beijing
- 2002 Established intra-Asia hub in Clark Philippines to strengthen UPS's air
network capabilities in Asia Pacific
- 2005 Began as wholly owned operation in Japan after acquiring the minority
shareholding of its joint venture partner Yamato Transport Co
- Appointed Official Logistics and Express Delivery Sponsor of the Beijing
2008 Olympic Games
- Launched direct flights between Shanghai and Japan
- 2006 Signed on as Official Express Delivery Sponsor of Hong Kong
Disneyland
- Launched direct flights from Shanghai to Europe along with three new
connecting flights to the U.S. and another between Qingdao and Incheon,
Korea
- Opened two UPS Express retail outlets in Shanghai, China
- 2007 Opened a new operation centre in Tirupur to meet growing demand for UPS
services in South India
- Opened the Olympics Logistics Centre in Beijing, operational facility of the
2008 Beijing Games, managed by UPS on behalf ofthe Beijing Organizing Committee
for the Olympic Games
- Launched five additional weekly flights connecting Bangkok, Singapore and
Mumbai to major trading markets in Europe, the Middle East and the
United States. Also launched five weekly flights in Korea connecting Korean
businesses to major trading centres in China and Europe
- Began construction of UPS Shanghai International Hub
- Launched third five weekly flights to Japan via Nagoya, linking the U.S.
with China
- Established co-branded Staples UPS Express stores in Beijing offering
customers a one-stop shop for their office supplies and international
shipping needs
- 2008 Began as wholly owned operation in Korea after acquiring shareholding
of its joint venture partner The Korea Express Co.
- Began construction of UPS Shenzhen Intra-Asia Hub
UPS (NYSE: UPS) is the world's largest package delivery company and a global
leader in supply chain and freight services. With more than a century of
experience in transportation and logistics, UPS is a leading global trade expert
equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS
serves more than 200 countries and territories worldwide. The company can be
found on the Web at UPS.com. To get UPS news direct, visit
pressroom.ups.com/RSS.
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