UPS picks Clark as new Asian hub

UNITED Parcel Service, the world’s biggest express carrier and package delivery company, is investing $300 million at the Clark International Airport to build its Asian gateway in the Philippines. Trade Secretary Manuel “Mar” Roxas II said President Macapagal-Arroyo and top officials of UPS will sign today a letter of intent for the Atlanta-based courier’s plan to set up a new regional hub in the country. UPS operates three air hubs in the region-Hong Kong, Singapore and Taiwan. Roxas said UPS has applied for incentives with the state-run Clark Development Corp. The company is eyeing tax- and duty-free
importation of capital equipment for its proposed hub in Clark. Roxas said
UPS was planning to dedicate at least 10 daily flights for the initial year of the Clark gateway. UPS has a fleet of 238 aircraft serving nearly two million customers over 200 countries worldwide. UPS has been operating through its local service agent, Delbros Inc., since 1988. In 1997, UPS and Delbros formed a joint venture. In her prepared speech, the President said: “This is an opportunity for the Philippines to be strategically located in a global network
of economies and communities.” She also said that by locating in Clark, the Philippines would be providing the region with an expanded and stronger network for economic integration. The Philippines is becoming the favored gateway site for global couriers in the Asia-Pacific region, which despite being relatively small compared to the US market, is the fastest growing region. In the Asean, between 30 percent and 40 percent of the region’s $611 billion in annual trade is shipped through air. Memphis-based Federal Express Corp. has been operating its regional hub at the former Subic naval base since 1997. Emboldened by the
efficient operations of its AsiaOne hub at Subic Bay, Fedex has expressed interest in extending its lease contract up to 2013. The company, which plans to buy eight more aircraft to beef up its fleet of 12 for its first contract extension in Subic, has also told Ms Macapagal of its interest in tapping the Cebu International Airport for its operations. Just like Fedex, UPS chose the Philippines because of its strategic location in the region -it is 1.5 hours from Hong Kong, two hours from Taiwan and four hours from Singapore, Japan and South Korea.
The proposed link-up between Clark and Subic is also expected to
boost traffic in these areas.
Copyright 2001 Philippine Daily Inquirer. Source : World Reporter
(Trademark)PHILIPPINE DAILY INQUIRER, 05th April 2001