UPS Opens Major Hub in Shanghai, China
Facility “Built for Speed and Reliability;” Accelerates Flow of Express Packages, Heavy Freight
SHANGHAI - UPS (NYSE:UPS) today placed in service a new international hub here, improving access to China and speeding the movement of express packages and heavy freight around the world.
The facility is strategically located at the Pudong International Airport, right in the heart of the Yangtze River Delta area, and now becomes the key gateway linking China to UPS’s global network.
It features the largest on-site 24/7 customs inspection area in Shanghai and was built to a unique design that facilitates rapid handling of express packages in addition to heavy freight.
“Everything about this facility was built for speed and reliability,” said Dan Brutto, president of UPS International. “Linked now to our vast integrated transportation network, it opens wider the doors of commerce with China. We believe Shanghai will become an even more attractive business location because our customers will recognize the importance of a world-class UPS facility that provides rapid access to the world.”
Joining Brutto at a special opening ceremony today were Mr. Wu Nian Zu, Chairman and President of the Shanghai Airport Authority (SAA); Derek Woodward, president of UPS Asia Pacific Region, and Richard Loi, the head of UPS China.
Mr. Wu, Chairman of SAA, said, “As the world’s third largest airport by cargo tonnage, and with annual growth of 11.5%, Shanghai Pudong International Airport offers a well-established air network that connects 179 international and domestic cities. The opening of the UPS hub, the first foreign-run hub in the West Cargo Handling Area, further accelerates the implementation of the national Shanghai Aviation Hub Strategy, strengthens the position of the airport and boosts the economic development in Shanghai, the Yangtze River Delta and China.”
The hub features 117 conveyor belts and 47 docking bays and has a package sorting capacity of 17,000 pieces per hour. It also is designed, however, for simultaneous rapid processing of heavy freight, recognizing the different types of business done by importers and exporters in China.
To speed the processing of packages and freight, UPS collaborated with Shanghai Customs to deploy an industry-first customs risk management system at the facility. By merging UPS information with Customs to identify high-risk items for inspection, the system minimizes unnecessary checks and expedites shipment clearance for delivery to recipients.
The dedicated customs area is equipped with advanced technology enabling automated import and export 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 the flow of the remaining packages.
With its high sorting capacity, the hub improves delivery times for customers in eastern China by a full day. In addition, pick-up times for express and cargo shipments in Shanghai will be pushed back by one hour and four hours, respectively, so customers have greater flexibility in shipment preparations.
Another industry-first feature is the “Shipper Build Area” at the General Cargo Handling Area, which allows customers to perform on-site packaging before goods are loaded on the aircraft. This eliminates the current industry practice of processing goods at a separate facility, once again saving time. It also improves service to customers who ship items requiring special handling, such as precise instruments.
“China is UPS’s top international priority,” said Loi, the head of UPS China. “We have continued a steady path of expansion 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.”
The Shanghai Airport Authority is responsible for the operation and management of two international airports in Shanghai - Pudong and Hongqiao. With double-digit average annual growth rates, the cargo tonnage of Shanghai Pudong International Airport accounts for over 85% of the Shanghai air cargo market. According to statistics from ACI, over the last five years cargo tonnage in the Shanghai Pudong International Airport has increased from 1.19 million in 2003 to 2.5 million in 2007, with its global rank climbing from 17th place to 5th place. In August of this year it climbed to third place and cargo tonnage is expected to hit 2.8 million by the end of the year. SAA is committed to implementing the national Shanghai aviation hub strategy to establish Shanghai’s airports as major international cargo hubs. The West Cargo Handling Area of Shanghai Pudong International Airport opened on Dec. 1, 2008. Located on the west side of the third runway at the Shanghai Pudong International Airport, it covers an area of 1.67 square kilometers and consists of a public cargo terminal, a base cargo terminal and a transit center with 38 parking stands for all-cargo aircraft and 2.45 million tonnage of designed capacity.
UPS is the world’s largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, Ga., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at UPS.com.
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