China boom sees UPS upping capacity

Undeterred by the US-led economic slow-down, UPS like its competitors, has its sights set on the dynamic China market and the up-and-coming India market to fuel growth for the company. By Donald Urquhart.


"While all our Asian markets are vitally important to UPS and we see true, long-term growth potential in the region, UPS’ current strategic focus is on growing our businesses in China and India," said UPSAsia chief, Derek Woodward.

Both countries drove UPS’ fourth-quarter 2007 results in Asia Pacific to deliver more than 15 per cent growth over thesame quarter in 2006.

"Intra-Asia and Asia-Europe trade have been growing despite the slowdown in the US so we are confident that market demand will remain steady," Woodwardadded.

China the key priority

With trade within the India-Japan- Australia triangle ¨C of which China sits in the center ¨C now exceeding trade across the Pacific Ocean, China which provided the company with a 20 per cent growth in exports last year, has become a key priorityfor UPS.

To leverage this growth the express and logistics company is opening a new hub at Shanghai’s Pudong International Airport towards the end of this year, joining DHL which is following a similar strategy, unlike rival Fedex which chose to put its new hubin the Pearl River Delta.

"This Shanghai hub fits into a networkof comprehensive UPS air hubs in Asia, providing unparalleled connection withinAsia, and the world," Woodward said.