Connect and get the inside scoop on Airline Companies

Welcome to Airline Pilot Forums - Connect and get the inside scoop on Airline Companies

If this is your first visit, be sure to check out the FAQ. Join our community today and start interacting with existing members. Registration is fast, simple and absolutely free.


User Tag List

Post Reply
 
Thread Tools Search this Thread Display Modes
Old 05-21-2008, 05:41 AM   #1  
Gets Weekends Off
Thread Starter
 
TipsyMcStagger's Avatar
 
Joined APC: Mar 2005
Posts: 229
Default UPS - Hearts are breaking all over the Philippines

UPS Chooses Shenzhen for New Intra-Asia Air Hub

Wednesday May 21, 6:00 am ET


UPS Also Launches Flights to Third Japanese City

SHENZHEN, China--(BUSINESS WIRE)--UPS (NYSE: UPS - News) is moving its intra-Asia air hub from the Philippines to Shenzhen in China’s thriving Pearl River Delta to improve customer service by reducing transit times across Asia.

UPS also has added five weekly flights in and out of Nagoya to enhance customer service to Japan’s Chubu region, a major industrial manufacturing center. UPS already flies to Tokyo and Osaka. The new flights offer significant new options to Chubu industry to reach the rest of Asia and the United States.

UPS will base the new intra-Asia hub at the Shenzhen Airport in southern China, near Hong Kong. The repositioning 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 located just north of Shenzhen. The new cost-efficient hub will be operational in 2010 and represents an estimated investment of US$180 million.

“Shenzhen’s strategic location will provide significant advantages, allowing UPS to better serve the growing Asian markets along these rapidly expanding trade lanes,” said Dan Brutto, president, UPS International. “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,” Brutto 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 southeast China and Hong Kong.

“Given the growth in shipping along the southern rim of China, it now makes more sense to sort and dispatch this volume from a hub closer to our customers,” explained Brutto. “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. It thus will play a substantially different role than the hub in Shenzhen, which will connect 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 be capable initially of processing up to 18,000 pieces per hour -- compared to the existing 7,500 pieces per hour in the Philippines – but can be easily expanded to a capacity of 36,000 pieces per hour. It will employ about 400 people.

UPS long has pursued a multi-hub strategy to ensure the highest levels of air service in Asia with existing facilities in the Philippines, Taiwan, Hong Kong and Singapore. The hub in the Philippines, located in Pampanga at the former Clark Air Force Base, opened in 2002 and became the site for a large sorting facility to handle packages destined for other points in Asia. The other three hubs generally handle volume moving in or out of Asia to North America and Europe.

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.

The new flights to Japan are the result of a U.S.-Japan aviation agreement signed in September 2007, which granted UPS the authority to operate daily flights between the U.S. and Nagoya in addition to its daily services to Tokyo and Osaka. UPS will operate five weekly MD-11 flights from Anchorage through Nagoya’s Central Japan International Airport before heading to Shanghai in China.

“The start of UPS flights to Nagoya will allow UPS to gain an even stronger foothold in Japan and increase transportation options for the various industries in Chubu,” said Brutto. “With our diverse product portfolio and worldwide network, UPS is well-positioned to support Japanese businesses interested in trading in global markets.”

Most recently in Japan, UPS expanded its facility in Shinkiba in central Tokyo to provide improved services to customers seeking integrated logistics solutions. Streamlined brokerage and bonded logistics services at the Shinkiba hub increased operational efficiency and improved customer service by shortening delivery times.
TipsyMcStagger is offline  
Old 05-21-2008, 06:49 AM   #2  
Gets Weekends Off
 
Trash Hauler 1's Avatar
 
Joined APC: Nov 2005
Posts: 325
Default

I wonder which one of our contractors will be flying the new volume? We sure don't have the jets or crews.

TH1
Trash Hauler 1 is offline  
Old 05-21-2008, 07:01 AM   #3  
Gets Weekends Off
 
Joined APC: Jun 2006
Posts: 2,088
Default

Kind of hard to enjoy the local nightlife with one of them antibacterial masks over your face.

We'll come down the river and visit y'all....
Huck is offline  
Old 05-21-2008, 08:29 AM   #4  
Gets Weekends Off
 
Joined APC: Mar 2006
Posts: 3,317
Default

I thought it'd be Shanghai? If not, why are we building that huge wearhouse there? I saw it the other day, pretty large...

http://www.iht.com/articles/2007/04/...berg/sxups.php
⌐ AV8OR WANNABE is offline  
Old 05-21-2008, 03:56 PM   #5  
Gets Weekends Off
 
FliFast's Avatar
 
Joined APC: Dec 2006
Position: I was acquired, Not Hired
Posts: 1,780
Default

Ever been to the Shenzie ? In a former life we wet-leased for China Eastern into there from Western Europe.

Just bring lotsa Tabasco, it'll kill the flavor of your crew meal...which is a good thing.

I havent flown into SZX with UPS yet, but I don't remember there being a lot of ramp space where we parked which was by the control tower.

FF
FliFast is offline  
Old 05-21-2008, 04:17 PM   #6  
Gets Weekends Off
 
Joined APC: Jun 2006
Posts: 2,088
Default

Yeah it's not a big airport.

The town is ok, but the air is yellow.....
Huck is offline  
Old 05-21-2008, 04:22 PM   #7  
Gets Weekends Off
 
Joined APC: Mar 2006
Posts: 3,317
Default

Quote:
Originally Posted by FliFast View Post
... Just bring lotsa Tabasco, it'll kill the flavor of your crew meal...
I believe that besides bringing 25+ different checklists of our own on each flight we are also required to bring Tabasco on all of our flights.
I think it's in the MRB 911. Oh, Imodium is mentioned in that bulletin too...
⌐ AV8OR WANNABE is offline  
Old 05-21-2008, 04:29 PM   #8  
Gets Weekends Off
 
767pilot's Avatar
 
Joined APC: Mar 2005
Position: 767 captain
Posts: 2,492
Default

Quote:
Originally Posted by ⌐ AV8OR WANNABE View Post
I thought it'd be Shanghai? If not, why are we building that huge wearhouse there? I saw it the other day, pretty large...

http://www.iht.com/articles/2007/04/...berg/sxups.php
It will be both
767pilot is offline  
Old 05-21-2008, 04:31 PM   #9  
Gets Weekends Off
 
Joined APC: Mar 2006
Posts: 3,317
Default

Quote:
Originally Posted by 767pilot View Post
It will be both
Cool, I hope we'll have a domicile there one day. I wouldn't mind bidding it with the right kind of incentives...
⌐ AV8OR WANNABE is offline  
Old 05-21-2008, 04:48 PM   #10  
Gets Weekends Off
 
767pilot's Avatar
 
Joined APC: Mar 2005
Position: 767 captain
Posts: 2,492
Default

The blueprint for incentives has already been drawn. It is appropriately enough in purple ink
767pilot is offline  
 
 
 

 
Post Reply
 



Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes


Related Topics
Thread Thread Starter Forum Replies Last Post
UPS buys Overnite for $1 Billion.... cash Freighter Captain Cargo 2 07-02-2015 07:16 PM
New Deal with Teamsters Cujo Cargo 4 10-01-2007 11:08 PM
Will FedEx Ship Profits to UPS? 767pilot Cargo 53 09-28-2007 06:50 AM
UPS counters IPA Freighter Captain Cargo 0 07-11-2005 09:59 AM
UPS-IPA contract talks Freighter Captain Cargo 0 07-05-2005 10:50 AM


All times are GMT -8. The time now is 07:57 AM.