UPS to maintain Clark operations despite transfer of its intra-Asia hub to Shenzhen
Clark international airport authorities said there is no need to panic on the transfer of UPS intra-Asia hub here to Shenzhen in China.
Jose Luciano, Clark International Airport Corp. (CIAC) president and chief executive officer, said the world’s largest air cargo carrier will still maintain its operations here.
Luciano said it is just reducing its facilities from nine aircrafts to two after 2010.
UPS top officials are moving their intra-Asia air hub to Shenzhen in China’s thriving Pearl River Delta to improve customer service by reducing transit times across Asia.
UPS Sr. Vice President Andy Connelly said the transfer of the hub from Diosdado Macapagal International Airport here is a “business decision of UPS” because of the growing business in North Asia.
Connelly has informed Luciano, Clark Development Corporation Chair Rizalino S. Navarro, the Department of Trade and Industry, and the Department of Transportation that the air cargo carrier would continue operating here as its muti-hub network in Asia.
He said UPS will continue the agreement signed with the Clark authorities because their operations in the Philippines is still vital.
Connelly said UPS will base the new intra-Asia hub at the Shenzhen Airport in southern China near Hong Kong as the transfer 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.
In Clark, UPS poured about US$ 230 million in operating the intra-Asia hub at the DMIA, as Connelly said the former US military base will still be UPS Philippine Gateway.
In a statement, “Shenzhen’s strategic location will provide significant advantages, allowing UPS to better serve the growing Asian markets along these rapidly expanding trade lanes.”
“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,” it added.
The UPS 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.”
Connelly said the transfer necessitated because of the US-China Air Services agreement signed n 2004.
“With this, we have signed agreement with Shenzhen Airport in 2007 that would make the China its new intra-Asia hub,” he said.
Currently, the markets of China, Hong Kong, Japan, Korea and Taiwan account for more than half of UPS’ total intra-Asia volume. Of this, a sizeable proportion of Asia package export volume now originates in southeast China and Hong Kong.
UPS Clark based workers have been assured that no dislocation will happen as an alternative employment opportunities will be offered to those that services will be affected in the transfer of the hub to China.
