UPS Moving Asia Air Hub to China

UPS Inc. said Wednesday it is moving its primary intra-Asia air hub to southern China, from the Philippines, to save money and reduce transit times across Asia.

The $180 million Shenzhen Airport hub near Hong Kong will open in 2010, UPS said. The move will cut transit times by about a day on many Asian flights and allow UPS to use less jet fuel.

UPS also said it added five weekly flights into and out of Nagoya, Japan.

The China hub will include an express customs unit, sorting facilities, and cargo operations. It will initially be capable of processing up to 18,000 pieces per hour, compared with an existing 7,500 pieces in the Philippines, but its capacity may double in the future, UPS said.
 
The Philippines hub, north of Manila at the former Clark U.S. Air Force Base, opened in 2002 and became the site for a large sorting facility to handle packages destined for Asian locations. That facility will remain open within UPS’ Asia network.

In addition to that facility’s main import and export gateway for the Philippines, UPS is also is considering placing alternative operations there and is attempting to offer alternative employment opportunities within its system for employees affected by the transition.

UPS is ranked No. 1 on the Transport Topics 100 listing of U.S. and Canadian for-hire carriers.