UPS opens new intra-Asia hub at Shenzhen

UPS launched its inaugural flight at Shenzhen’s Bao’an International Airport on 9 February, marking the opening of its new intra-Asia hub, replacing operations at the former Clark Air Force Base in the Philippines. The new US$180 million UPS Asia-Pacific hub has 400 staff and is capable of sorting 18,000 packages an hour, according to UPS.

The International Cargo Centre Shenzhen (ICCS) will provide one-stop ground handling operations to UPS along with all freighter services in terms of general cargo at Shenzhen Bao’an International Airport, including shipment acceptance, physical warehouse cargo handling operations and documentation services.

The new hub – UPS’ second in China after opening a $125 million international air hub in Shanghai in December 2008 – will provide overnight delivery services between Asia-Pacific countries and is expected to see 81 flights weekly covering most Asia-Pacific countries and cities. China, Japan and South Korea now account for more than half of the company’s total intra-Asia volume.

The existing operations at Clark would be refocused to serve as the main import and export gateway for the Philippines. On 8 February UPS announced a better-than-expected results in the fourth quarter of 2009, due to the strong performance of its international segment. In the Asia-Pacific region, export volume grew 10 per cent in the fourth quarter compared with the same period in 2008.

“During the fourth quarter, we saw a noticeable increase in our overall flow of goods,” said Richard Loi, head of the firm’s China division and senior vicepresident of UPS Asia-Pacific region. According to Loi, China-to-Europe volume grew by more than 15 per cent, while intra-Asia volumes increased by more than five per cent.

“The Chinese market has always been a top priority for UPS and with the official opening of our Asia-Pacific hub we are the only logistics and supply chain solutions provider with two hubs in China. We plan to continue extending the roots we have put down in China as part of our commitment to providing services to the Chinese market,” he said.