Bangkok--28 May--Ogilvy Public Relations Worldwide UPS is moving its intra-Asia air hub to Shenzhen in China’s Pearl River Delta from its current location in the Philippines. The new air hub will significantly improve UPS’s service by reducing transit times across the Asia region. UPS will base the new intra-Asia hub at the Shenzhen Airport in southern China, near Hong Kong. The repositioning of the hub will slash at least a day off shipment times-in-transit for Asian customers while offering a new level of service to the manufacturing region in Guangdong province, located just north of Shenzhen. The new hub, which will also reduce operational costs, will be completed and activated in 2010 and represents an estimated investment of US$180 million. “Shenzhen’s strategic location will provide significant time-in-transit and cost advantages, allowing UPS to better serve the growing Asian markets along these rapidly expanding trade lanes,” said Derek Woodward, president, UPS Asia Pacific. “For example, we expect a full day’s improvement in transit time on almost 200 city pairs once this hub opens. “We want to be where our customers need us most,” Woodward added. “Since we began flying directly to China in 2001, we have watched this region grow exponentially not only from a small package perspective but also in heavy air freight.” 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 Hong Kong and southeast China, where the Shenzhen hub will be located. “Given the growth in shipping along southern China, it makes sense to sort and dispatch this volume from a hub closer to our customers,” explained Woodward. “And in making the switch, because of the growth we’re seeing, we intend to build a new sorting hub in Shenzhen with five times the capacity of the existing hub. UPS is very grateful to the Shenzhen government and Shenzhen Airport authority for their strong support of our expansion and we look forward to a successful partnership.” Since taking direct control of its international express operations inside China in 2005, UPS 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. When it opens in November, the Shanghai hub will connect China to the UPS global air network, including U.S. and European destinations. The Shenzhen hub will complement the Shanghai hub by connecting China with all major Asian points. The Shenzhen hub, expected to total about 89,000 square meters in size (almost 1 million square feet), will include an express customs handling unit, sorting facilities, cargo handling and cargo build-up areas and ramp handling operations. It will initially be capable of processing up to 18,000 pieces per hour but can be easily expanded to a capacity of 36,000 pieces per hour. It will employ about 400 people. UPS has long pursued a multi-hub strategy to ensure the highest levels of air service in Asia with existing facilities in the Philippines and Hong Kong and by the end of the year, Shanghai. The hub located at Diosdado Macapagal International Airport, the former Clark Air Force base in Pampanga, Philippines since 2002, became the site for a large sorting facility to handle packages that were destined for other points in Asia. The existing facility at Clark will continue to be a strategic location for UPS’s multi-hub network in Asia. In addition to Clark’s role as the main import and export gateway for the Philippines, UPS also is exploring placing alternative operations there. As an employer that values its employees and with a strong tradition of promoting from within the company, UPS is identifying alternative employment opportunities within the UPS network for those who will be affected by the transition. UPS (NYSE: 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. To get UPS news direct, visit pressroom.ups.com/RSS. Issued on behalf of : UPS Thailand For further information : Sahasaya Panichapong ([email protected]) Ogilvy Public Relations Worldwide Ltd. Tel. 0-2205-6605 Monrudee Teeraworawit ([email protected]) UPS Parcel Delivery Service Limited. Tel. 0 2728 9091