UPS China hub moves closer to reality
UPS soon plans to begin construction of its new regional air hub at Pudong International Airport in Shanghai set to open in 2008.
The new air hub has been in the works ever since UPS began direct air service to China in 2001 and received U.S. authority in 2005 for three additional frequencies per week, including two to Shanghai, under the 2004 U.S.-China aviation agreement. The frequencies created the volume needed for UPS to establish a regional air hub in Shanghai.
UPS now operates 21 weekly U.S./China flights. The Atlanta-based express carrier formally signed a lease agreement with the Shanghai Airport Authority on April 12 to operate the hub. U.S. Transportation Secretary Mary Peters attended the ceremony, signaling the importance of the facility to bilateral trade.
The new hub will link China to UPS's international network. UPS now has direct control of its package delivery operations in the country after regulations requiring foreign delivery companies to operate in local joint ventures were loosened. Local UPS offices will deliver packages to local airports for transport to Shanghai by Chinese all-cargo airline Yangtze River Express.
UPS operates 76 takeoffs and landings per week in Shanghai, with an additional 24 dedicated movements operated by Yangtze River Express. Operations include service to Europe and Asia, in addition to the United States. Flights are expected to increase as UPS’s hub becomes operational and the capacity at Pudong continues to grow.
UPS said the hub would be able to sort 17,000 packages per hour by 2012 and have a workforce of more than 1,000. The sort center, which will operate 24 hours per day, will allow customers later pick up times in the Shanghai region and extra capacity, UPS added. When it opens, UPS will expand the size of its fleet serving Shanghai by switching from MD-11 aircraft to Boeing 747-400s.
Shanghai Airport is constructing a third runway and the West Cargo Terminal Area to support the hub and other cargo operations.
FedEx will move its Asian hub from Subic Bay, the Philippines, to Shenzen's Baiyun Airport in 2008.
UPS China hub moves closer to reality
