Following its announcement in May 2008, UPS has begun construction of its new intra-Asia air hub at Shenzhen International Airport.
Once completed, the Shenzhen facility will replace UPS's current intra-Asia hub located at the former Clark Air Base in the Philippines and serve as UPS's primary transit hub in Asia. The facility is expected to open in 2010.
The repositioning of the air hub is expected to cut at least a day off shipment times-in-transit for Asian customers while offering a new level of service to the manufacturing region located just north of Shenzhen, not far from Hong Kong.
Daniel Brutto, president of UPS International, said that there are enormous growth opportunities in this region and UPS intends to capitalize on this growth by offering superior service. He added that the strategic location of UPS's Shenzhen Intra-Asia Hub is going to strengthen their position in Asia.
Currently, the markets of China, Hong Kong, Japan, Korea, and Taiwan account for more than half of UPS's total intra-Asia volume. Of this, a sizeable proportion of Asia package export volume now originates in southeast China and Hong Kong.
The UPS Shenzhen Intra-Asia hub will be built on a land area of 89,000 square meters and include a dedicated 150,000 square-meter ramp provided by Shenzhen Airport, an express customs handling unit, sorting facilities, and cargo handling areas.
Package sorting capacity is projected to reach 18,000 pieces per hour with the flexibility to expand to 36,000 pieces per hour. The hub initially will employ approximately 400 people and represents an investment of USD180 million. The hub will operate 24 hours a day, seven days a week.
UPS took direct control of its international express operations inside China in 2005, and has made significant investments in the country. In 2007, UPS signed an agreement with the Shanghai Airport Group to establish a UPS international air hub at Pudong International Airport in Shanghai. Expected to commence operations in December, the Shanghai hub will connect China to the UPS global air network, including U.S. and European destinations. It thus will play a substantially different role to the hub in Shenzhen, which will connect all major Asian points.