UPS expansions defy world economic woes

In fact, not only is the package and freight giant aiming high for the next few years, it is also gearing up for what it expects to be one of its best peak seasons despite a clear lethargy that much of the general air cargo industry is experiencing.


UPS


UPS expansions defy world economic woes

In fact, not only is the package and freight giant aiming high for the next few years, it is also gearing up for what it expects to be one of its best peak seasons despite a clear lethargy that much of the general air cargo industry is experiencing. Recognising that more than 95 per cent of the world’s potential customers are located outside the United States, Scott Davis, UPS chairman and CEO has not only urged US businesses to be more vocal in demanding better access to what he termed a “huge wave” of global consumers; his company is expanding to take advantage of world trade opportunities despite the recession.

Global expansion

In September, UPS announced plans for expanding its European air hub facilities at Cologne Bonn Airport. That expansion involves extending an existing building for processing larger freight shipments and equipping the existing facility with additional state-of-the-art technology. Together, these initiatives will significantly increase the hub’s package sorting capacity from today’s 110,000 to 190,000 packages per hour. The expansion is scheduled for completion in September 2013. The Cologne/Bonn operation is the second largest operation within the UPS system next to Worldport in Louisville, Kentucky. In 2010, revenues from the UPS Europe region totaled US$49.6 billion, while delivery volumes totaled a whopping 3.94 billion packages and documents. From Cologne/Bonn, UPS services 55 intra-Europe airports with 156 intra- Europe daily flights; 12 intercontinental airports with 136 intercontinental flights. In July UPS began daily service from the European hub to growing Chengdu, China, in its effort to expand its reach into inland China. As a result, UPS boosted its profit 26 per cent in Second Quarter 2011 largely though expanding its Asian air network to connect with Europe. The service stops in Warsaw, Poland, before flying to Chengdu’s Shuangliu International Airport, China’s sixth largest cargo and passenger hub. The service will end at UPS’s Asian hub in Shanghai. In Asia, UPS has improved more than 100 intra-Asia lane pairs since opening its Shenzhen hub in May 2010. Since then, UPS has operated more than 5,000 flights to and from this hub. The decision to move the intra-Asia hub to Shenzhen was prompted by developing trade flows that now see more than 75 per cent of intra-Asia business originating from the North Asian region. The improvements include faster transit times on key lanes between India and the rest of Asia and between S. Korea and other Asian destinations. For example: Beijing customers now benefit from improved time-in-transit and later cut-off times to cities like Hong Kong, Singapore, Sydney, Taipei, Tokyo and Osaka. The Indian cities of New Delhi, Mumbai and Bangalore have seen reduced time-in-transit to destinations like Australia, China, Hong Kong, Korea, Singapore and Vietnam. And shipments bound from Seoul to major cities like Guangzhou, Hong Kong, Mumbai, Singapore and Tokyo now benefit from later cut-off times. In June, UPS also launched a direct weekly flight from Guam to Hong Kong, which will service the express package, military and forwarder communities and provide capacity for the Asia export market. “Additionally, the recently announced expansion of the US Marine base on Guam is increasing requests for UPS services there,” says Derek Woodward, president of UPS’s Asia Pacific Region.