UPS to boost global trade with enhanced operations at new hubs in Hong Kong and the Philippines
The Hong Kong hub, expected to be completed by 2028, can handle as much as 1 million tons of cargo. In recent years, UPS has made numerous network and facility enhancements across Asia, including Singapore, Japan, China, Vietnam, South Korea, and the Philippines. The company’s new hub in the Philippines is expected to be operational by late 2026.
Hong Kong, China— Global logistics service provider UPS (NYSE: UPS) and the Hong Kong Airport Authority have entered into an agreement that improves UPS service to customers and enhances the company’s operations in Asia with a new hub at the Hong Kong International Airport and near the Hong Kong-Zhuhai-Macau Bridge.
The new hub will serve as UPS Hong Kong’s main facility for processing and sorting imports, exports, and transshipments, to and from Europe, the U.S., and other parts of Asia.
The hub is expected to be completed by 2028 and will be built on a land parcel of 20,000 square meters with direct access to aircraft. The facility is being designed to handle close to 1 million tons of annual capacity, giving UPS and its customers around the world better and more reliable connectivity to Hong Kong, the Greater Bay Area, and the growing Asia Pacific consumer market.
“Hong Kong continues to be an engine of growth and a critical part of UPS’s global smart logistics network,” said Daryl Tay, president of UPS North Asia District. “This new hub, along with our existing operations at Shenzhen Bao An Airport, demonstrate our continued commitment to Asia. We will continue to invest in areas of our network that bring unique value to our customers and create additional growth opportunities for UPS.”
A fully automated facility, the hub will be powered by state-of-the-art sorting and scanning technology and boasts environment-friendly features.
This latest investment is part of UPS’s expansion plans to support Greater Bay Area growth, and better serve evolving customer needs and shipping demand across its air network. It also allows UPS to optimize its existing operations in Hong Kong by streamlining some smaller and separately located facilities.
Home to 86 million people and with gross domestic product worth almost US$2 trillion as of 2022, the Greater Bay Area comprises Hong Kong, Macau, and nine municipalities in southern China’s Guangdong Province. UPS has been operating in Hong Kong and Macau for 35 years, with services covering all 11 Greater Bay Area cities.
UPS says it will continue to invest in Asia Pacific to serve its customers with stronger cross-border connectivity, greater capacity, and an industry-leading customer experience. In recent years, UPS has made numerous network and facility enhancements across Asia, including Singapore, Japan, China, Vietnam, South Korea, and the Philippines.
UPS also launched UPS Premier, a ‘white glove’ shipping service targeted at healthcare customers who require precision logistics for patient-critical, time- and temperature-sensitive products. UPS Premier is now available in seven countries in Asia, including Hong Kong, with more locations planned for launch next year.
Continued growth in Asia Pacific with new hub in the Philippines
CLARK, Philippines – Global logistics leader UPS (NYSE: UPS) has taken the value of its investment commitments in Asia Pacific to over $250m since the start of 2023.
The investments include the company’s recent agreement with The Luzon International Premiere Airport Development Corporation (LIPAD) to expand its operations at Clark Airport (CRK) in the Philippines.
The move will enable UPS to further strengthen its portfolio of integrated express, supply chain and healthcare logistics services.
“Asia Pacific continues to be one of UPS’s fastest growing regions. UPS has continued to invest in our network to maximize speed and flexibility, build solutions addressing the shift of global trade lanes, and offer resilience for our customers,” said Wilfredo Ramos, president, UPS Asia Pacific.
The agreement is the latest in a series of recent network and facility enhancements the company has made across Asia Pacific including in Singapore, Japan, China, Vietnam, South Korea, Taiwan, and most recently Hong Kong, where UPS announced it will open a new state-of-the-art facility by 2028.
“We have been doing business in our Philippines hub for more than 25 years, helping to connect businesses to markets in Asia Pacific and beyond. The investments UPS continues to make through this expansion will enhance time in transit across Asia Pacific and continue to deliver service reliability for our customers and position UPS for long term growth,” Ramos added.
Since 2022, UPS has also invested intensively in its Healthcare business introducing UPS Premier – which provides priority handling for time- and temperature-sensitive, patient-critical products – in nine markets across the Asia Pacific region.
In 2023, the company added over 22,000 square meters of cold-chain enabled handling, storage and distribution space via new healthcare facilities in Singapore and Australia. An additional 12,000 square meters is planned for 2024.
“UPS’s expansion in Clark will bring positive changes to Pampanga, providing job opportunities for the local community and serving as an economic stimulus in the region,” said LIPAD Chairperson Josephine Gotianun Yap.
“This partnership between UPS and LIPAD also represents a significant milestone in developing Clark as an ideal logistics hub for global brands aiming to establish or expand their international operations. LIPAD, which operates Clark International Airport, looks forward to welcoming UPS to its future location in Clark and supports its expansion in the Philippines,” Yap continued.
Why it matters: The Asia Pacific region is home to many of the fastest-growing global economies. UPS said by making improvements to its customer experience there, the company is positioning itself to become the number #1 complex healthcare logistics provider and premium logistics orchestrator in the world.
“We’ve been in our Philippines hub for more than 25 years, helping connect businesses to markets in Asia Pacific and beyond,” Ramos noted. “The investments will enhance time in transit and position UPS for long term growth.”
“We’re also growing our healthcare business in the region, introducing UPS Premier in nine markets across Asia Pacific. This service provides priority handling for time- and temperature-sensitive, patient-critical products,” he added.
In 2023, UPS added over 22,000 square meters of cold chain-enabled handling, storage and distribution space with new healthcare facilities in Singapore and Australia. An additional 12,000 square meters is planned for 2024. Source: www.ups.com
