United Parcel Service Inc (UPS) expects its new air hub in the Philippines to trigger a new growth spurt in deliveries to and from China, where its revenue more than doubled since launching direct flights last year, Ronald Wallace, president of UPS's international operations, said in an interview.
"We're going to get 24 hours' faster service," Wallace said. Transit time was cut to one day from two days, for example, between Shanghai and Tokyo, Osaka, Taipei, Seoul, Singapore and Manila.
April 3 marks the third night of operations at the company's intra-Asian hub at Diosdado Macapagal International Airport, a former US Air Force base about 50 miles northwest of Manila. Air freighters now can reach all major cities in the region within four hours, allowing UPS to extend dropoff deadlines and make deliveries earlier in the morning.
Such service enhancements could help UPS bolster its market share in Asia, where it has trailed the DHL Worldwide Express delivery network and FedEx Corp. UPS says its express-delivery volume already has been growing at a faster pace than the economy in major parts in Asia, a sign that it is gaining on its rivals.
The new hub is particularly important to UPS's ambitions in China, Asia's fastest-growing freight market. UPS began direct flights there from the US last April, after winning a fierce lobbying battle for the coveted rights as the one new carrier to serve China under a bilateral agreement. Since starting its six weekly round-trip flights, UPS's annual revenue in China has increased to more than US$200 million from US$100 million.
UPS also has hubs in Hong Kong, Singapore and Taipei, with the Taipei hub linking Asia with the US. In addition to enhancing service within Asia, the new hub will connect the region with the company's European operations. "We've now created the missing link," said Charles Adams, president of the company's operations in Asia.
(Xinhua News Agency April 04, 2002)
