Retailing, Franchising, and Consumerism Business Intelligence in China

Construction Starts On UPS Air Hub In Shanghai

UPS and the Shanghai Airport Authority have conducted a formal groundbreaking ceremony for the UPS International Air Hub at Pudong International Airport.

"The opening of this hub will ensure we are well-positioned to support the explosive growth in Asia's regional trade," said UPS Chairman and CEO Mike Eskew, who attended the event. "Export volume growth in China and throughout Asia has been robust and the outlook remains bright. We are extremely proud to be the first U.S. airline to open an international air hub in China under the 2004 U.S.-China Air Services Agreement."

Over the past five years, UPS has invested about US$600 million in China, including a successful transition to become the first wholly-owned foreign express carrier in the country.

Located at the southern end of the West Cargo Terminal Area, the new hub will be built on a parcel totaling 1 million square feet and will open next year. Rapid expansion is planned to a sorting capacity of 17,000 pieces per hour. The new hub will link all of China via Shanghai to UPS's international network with direct service to the Americas, Europe and Asia. It also will connect points served in China by UPS through a dedicated service provided by Yangtze River Express, a Chinese all-cargo airline.

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