As part of an effort to link China to markets around the globe, package delivery giant UPS has opened three warehouse and distribution centers (DCs) in Shanghai, Suzhou and Futian and is executing plans to open another 20 facilities in major cities over the next two years.
The new facilities, each of which is strategically located adjacent to vital manufacturing centers, expands to more than 40 the number of logistics centers operated in China by UPS Supply Chain Solutions, a provider of third-party logistics services. The supply chain management arm of UPS now plans to open 10 facilities in 2005 and another 10 in 2006.
UPS Supply Chain Solutions facilities in China are designed primarily to distribute textile/apparel, high-tech, automotive and consumer goods for both export and import.
In Shanghai , the new 160,000-square-foot facility is in the Wai Gao Qiao Free Trade Zone. Also in Shanghai , UPS has three additional DCs for a total of approximately 400,000 square feet, including a large ocean container freight station, a sizeable airfreight facility at Pudong Airport and a customs office in downtown Shanghai.
In Futian, the new 240,000-square-foot bonded warehouse and full DC also is located in a Free Trade Zone. In Suzhou, the 66,000-square-foot facility was designed specifically for high-tech customers.
UPS Supply Chain Solutions' offerings now include freight forwarding, order and inventory management, shipment preparation, cross-dock operations, critical parts distribution, service parts logistics, international trade management, customs brokerage and domestic transportation services. UPS's expanded facility and transportation network will accelerate the movement of components and finished goods to and from the rapidly emerging provinces of China, especially in the Pearl River Delta and the Yangtze Delta River regions.
In addition to the logistics network, UPS has an intra- China international express network. By the end of 2005, UPS will have direct control over its international express operations in 23 business locations across China covering more than 200 cities, which account for more than 80% of China's GDP.
In November 2004, UPS began flying the first six of 12 new flights to China with MD-11 service to Shanghai , where the company's Greater China office is located. The new flights will triple the current service from six to 18 flights a week. UPS plans to begin in April non-stop service between the U.S. and Guangzhou and also to establish a Shanghai air hub in 2007. UPS has filed with the U.S. Transportation Department for three
additional flights to start in 2006.