The International arm of express package delivery company United Parcel Service has broken ground on a new facility at Shenzhen International Airport in China,  which once completed will provide UPS as an Intra Asian hub, capable of shaving precious days and hours off transit times for the company’s customers.

Once completed, the hub is to replace the current UPS intra Asia facility which is located at the former Clark Air Base in the Philippines.  The facility at Shenzhen International Airport should be completed and open by 2010.  The new location expected to tap into China’s Pearl River Delta manufacturing district, as well as lessening transit times for all Asian Customers.

According to UPS, the Shenzhen facility will be built on a land area of 89,000 square meters and include a dedicated 150,000-square-meter ramp provided by Shenzhen Airport, an express customs handling unit, sorting facilities as well as cargo handling areas.  The facilities package sorting capacity is projected to reach 18,000 pieces per hour with the flexibility to expand to 36,000 pieces per hour. 

Commenting on the future of the the company in the region once the Shenzhen hub is complete, the President of UPS International, Daniel Brutto said that “there are enormous growth opportunities in this dynamic region,” and “UPS intends to capitalize on this growth by offering superior service.”

Brutto also spoke of the opportunities provided by placing the new hub within the Pearl River Delta region.  The President saying “the strategic location of UPS’s Shenzhen Intra-Asia Hub is going to strengthen our position in Asia.”  A statement that was backed up Dr Huang Chuan Qi, the President of Shenzhen International Airport.  “Shenzhen International Airport offers a well established air network that connects 18 countries and 34 cities worldwide with 139 air lanes," said Dr Qi.  “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 I believe Shenzhen airport is well positioned to promote intra-Asia trade both economically and geographically.”

At present, the markets of China, Hong Kong, Japan, Korea and Taiwan account for more than half of UPS’s total intra-Asia volume.  According to UPS, of this volume, a sizeable proportion of Asia package exports now originates in southeast China and Hong Kong.

Source: United Parcel Service

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