Worldwide package delivery firm United Parcel Service has announced that the company will shift its intra-Asia air hub from the Philippines to the coastal city of Shenzhen in China.

The new facility to be established at Shenzhen Airport, will cost UPS some US$180 million dollars and be operational in 2010, UPS hoping that Shenzhen’s strategic location will prove beneficial to both the company and its customers. 

Dan Brutto, President of UPS International heralded the decision to change hubs, saying that “the repositioning will slash at least a day off shipment times-in-transit for Asian customers while offering a new level of service to the manufacturing region located just north of Shenzhen.”

Brutto also claimed that the repositioning would allow UPS to “better serve the growing Asian markets along these rapidly expanding trade lanes.”

The decision to change UPS’ intra-Asia air hub, comes as UPS also moves to add flights into and out of Nagoya, Japan.  While UPS already flies to Tokyo and Osaka, the destination of Nagoya has been added to provide nearby industry with greater shipping options.

The flights were made possible by a newly inked United States - Japan  aviation agreement.  the agreement allows UPS to operate daily flights between the United States and Nagoya in addition to its existing flights between the two nations. 

UPS will operate five weekly MD-11 flights from Anchorage through Nagoya’s Central Japan International Airport before heading to Shanghai in China.

Source: United Parcel Service

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