UPS announce first US air hub in China

UPS and the Shanghai Airport Authority conducted a formal signing ceremony in another step toward construction of the UPS International Air Hub at Pudong International Airport in Shanghai. Presiding over the ceremony were US Transportation Secretary Mary Peters and Vice Mayor of Shanghai Yang Xiong.
The UPS International Air Hub, scheduled to open in 2008, will be the first constructed by a US carrier and will link all of China via Shanghai to UPS’s international network with direct service to the Americas, Europe, and Asia. It also will connect points served in China by UPS through a dedicated service provided by Yangtze River Express, a Chinese all-cargo airline.
The ceremony marked the signing of the operating agreement and lease contract for the hub. These agreements are a direct result of the Agreement on Sino-US Civil Aviation Transportation Air Services signed by the Chinese and US governments in July 2004.
UPS is calling the air hub “a significant step in making the Shanghai Airport an international cargo hub, promoting the development of the Shanghai transportation center, and upgrading the service functions of the city of Shanghai.” Under the 2004 Air Services agreement, UPS will find it easier to expand its international and Chinese networks in the future while immediately gaining new flexibility in the way it schedules its flights now.
Over the past five years, UPS has invested approximately USD 600 million in China, including its successful transition to become the first wholly owned foreign express carrier in China.
When the hub opens, it will operate 24 hours a day, seven days a week, and UPS will increase its capacity into Shanghai by “up-sizing” aircraft from the current MD-11s to Boeing 747-400s.