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UPS Expands Logistics Reach in China

August 28, 2013

UPS announced the expansion of its presence in China with the addition of two new contract logistics distribution facilities in Chengdu and Shanghai, bringing the total to more than 130 contract logistics facilities, covering 87 cities. The two new facilities are in addition to the UPS healthcare facilities that opened last year in Shanghai and Hangzhou. The contract logistics facilities will provide distribution and warehousing solutions to shippers who want to reach customers within China. These facilities demonstrate UPS' continued commitment to serving China's emerging middle class, according to the company.

According to a recent World Bank report, China is the second largest global economy and the world's largest exporter and manufacturer of goods. The World Bank report continues to predict that China will be the world's largest economy by 2030.

"UPS is committed to supporting emerging market demand and helping customers expand into new markets in China," said Jim Barber, president UPS International."Expansion efforts, such as the opening of these two facilities, will bring unmatched resources to our customers looking for a national distribution platform in China. Our customers will benefit from our trustworthy and reliable service, proven logistics methods, industry-leading technology solutions, global distribution and multi-modal transportation network and decades of experience in the Chinese market."

The two non-bonded distribution facilities in Chengdu and Shanghai are strategically located in close proximity to international airports and major road networks. Built with capabilities to support a diverse spectrum of growing Chinese industries — primarily high-tech, industrial manufacturing, aerospace and retail — customers will also have connectivity to UPS global IT platforms for distribution and post-sales support.

The new facilities are considered by the company to be a major part of UPS' efforts to develop a national distribution network in China and strengthen the company's overall portfolio of international capabilities. Each facility is designed with specific regional and market needs in mind.

Keeping with the Chinese government's strategic "Go West" initiative, the new Chengdu facility offers more than 47,000 square feet of warehousing and distribution space. It provides multinationals looking to conduct business in the region with access to central and western China and the growing cities of Chengdu and Chongqing. The facility is located 2.5 miles from the Chengdu Shuangliu International Airport, which facilitates convenient access to major foreign markets and is in close proximity to major interstate roads, putting two-thirds of China's Southwest population within a day's drive.

The new Shanghai facility consists of more than 70,000 square feet of distribution space and is less than two miles from the UPS International Hub at Shanghai's Pudong Airport, China's largest airport by air cargo volume. The close proximity to the hub enables later cut-off times for express and freight exports to key markets in North America, Europe and within Asia. The new facility, UPS's fourth in the area, is designed to meet the needs of multinational companies looking to increase their business operations in the domestic Shanghai market.

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