UPS To Move Air Hub To China From Philippines

[Gerald A]

Thursday May 22, 2008

United Parcel Service plans to relocate its air hub in the Philippines to south China, its Chinese partner said on Thursday, as the world's largest package delivery firm speeds up expansion in China's fast-growing market.

Shenzhen Airport said its state-run parent has agreed to build an 89,000 square-metre facility at the airport of the boom town of Shenzhen, near Hong Kong, which it will lease to UPS for at least 20 years.

It did not disclose the amount of the investment in the facility, but Shanghai Securities News put the figure at USD$180 million.

The facility will be able to sort up to 36,000 parcels per hour, nearly five times more than UPS's current hub at Clark Airport, north of Manila, Shenzhen Airport said.

Takeoffs and landing of UPS flights are expected to total at least 108 per week when the air hub starts operations in 2010, rising to no fewer than 140 in the medium to long term, it said.

Industry giants such as FedEx and DHL Express are increasingly focusing on China, where rocketing global trade is driving demand for freight and logistics services.

FedEx has committed to building an air hub in the southern Chinese city of Guangzhou, while UPS and DHL Express are building hubs in Shanghai.

(Reuters)

Gerald