UPS today officially opened its new international hub in Shanghai to improve access to China andspeed up the movement of express packages and heavy freight around the world.
Strategically located in Shanghai Pudong International Airport right in the heart of theYangtze River Delta area, the $125 million facility represents the key gateway linking China toUPS’s global network. Pudong, with double-digit growth rates and 2.5 million tonnes of cargo in2007, has grown into the world’s fifth-largest cargo airport. On December 1, it opened alarge-scale 1.67 sq. km cargo area, including parking space for 38 freighters.
The UPS China hub, located within this new cargo area, features 117 conveyor belts and 47docking bays and has a package sorting capacity of 17,000 pieces per hour. It is also designed,however, for simultaneous rapid processing of heavy freight, recognising the different types ofbusiness done by importers and exporters in China.
With its high sorting capacity, the hub improves delivery times for customers in easternChina by a full day. In addition, pick-up times for express and cargo shipments in Shanghai will bepushed back by one hour and four hours, respectively, so customers have greater flexibility inshipment preparations.
In addition, the hub has the largest on-site 24/7 customs inspection area in Shanghai alongwith a unique design that facilitates rapid handling of express packages in addition to heavyfreight.
The dedicated customs area is equipped with advance technology enabling automated import andexport inspection thereby increasing overall package flow efficiency. With a touch of a button,specific packages can be routed off the main conveyor belts for inspection without impacting theflow of remaining packages.
Another industry-first feature is the “Shipper Build Area” at the General Cargo HandlingArea allowing customers to perform on-site packaging before goods are loaded onto the aircraft.This eliminates the current industry practice of processing goods at a separate facility, onceagain saving time. It also improves service to customers who ship items requiring special handling,such as precise instruments.
To speed up the processing of packages and freight, UPS collaborated with Shanghai Customsto deploy an industry-first customs risk management system at the facility. By providing UPSinformation to Customs ahead of time to identify high-risk items for inspection, the systemminimises checks and expedites shipment clearance for delivery to recipients.
Dan Brutto, president of UPS International, commented on the new facility: “Everything aboutthis facility was built for speed and reliability. Linked now to our vast integrated transportationnetwork, it opens wider the doors of commerce with China. We believe Shanghai will become an evenmore attractive business location because our customers will benefit from a world-class UPSfacility that provides rapid access to the world.”
Chairman and President of the Shanghai Airport Authority (SAA), Mr. Wu Nian Zu, along withPresident of UPS Asia Pacific Region, Derek Woodward, and the head of UPS China, Richard Loi,joined Brutto at the special opening ceremony today.
“China is UPS’s top international priority,” said Loi. “We have continued a steady path ofexpansion here and this latest facility stands as a strong testament to our long-term commitment.We are grateful for the leadership of Chairman Wu and the strong support of the Chinese government,without which today’s event would not have been possible.”
In addition to its China hub, UPS continues to invest in China with the construction of its$180 million new intra-Asia air hub at Shenzhen International Airport which will replace itscurrent intra-Asia hub in the Philippines on opening in 2010. In total, the company has investedmore than $300 million in its two new air hubs.
Along with UPS, the other global integrators – DHL, FedEx and TNT – have all been heavilyinvesting in China in the last few years. FedEx has invested $150 million in its Asia-Pacific hubat Guangzhou in southern China but is delaying the opening of the hub by several months from theoriginally scheduled opening this month until the “first half” of 2009 for unstated reasons.
DHL opened a $110 million extension of its Central Asia air hub at Hong Kong InternationalAirport in September and is due to open a North Asia hub at Shanghai in 2010. TNT, which isfocusing on its road networks following the acquisition of trucking company Hoau, has extended itsSoutheast Asia road network into China and also opened six more international express branches inChina.
