UPS to Spend $7B to Upgrade Delivery Network
Photo courtesy of UPS.
UPS will invest $7 billion over the next three years to upgrade its delivery network, including acquiring fleet vehicles and aircraft, to better manage heavier holiday activity.
The funds will also be spent to build and renovate facilities and enhance information technology platforms to support the network. An additional $5 billion will be used to increase pension funding. The total investment is designed to enhance shareholder value, according to a release.
UPS partly attributed the move to the Republican-backed Tax and Jobs Act approved by President Trump and Congress in late 2017.
"Tax reform is a tremendous catalyst," said David Abney, UPS chairman and CEO. "We will continue to evaluate additional actions that benefit customers, employees and shareowners as we progress further in the year."
On Feb. 1, UPS ordered 14 Boeing 747-9 cargo gets and four Boening 767 aircraft to support the company's air services. The company expects deliver of the new aircraft by the end of 2022.