Express opportunities in China
Express opportunities in China
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UPS receives additional tax breaks for Worldport expansion
United Parcel Service Inc. again has received tax breaks from Kentucky to help offset some of the costs of the USD 1 billion expansion project under way at its Worldport air cargo hub at Louisville International Airport.
UPS was approved by the Kentucky Economic Development Finance Authority for USD 2.5 million in state sales tax refunds during its June 28 meeting in Frankfort. The refunds are related to construction materials purchased as part of the Worldport expansion project.
At yesterday’s KEDFA meeting, the package-delivery giant submitted the second of what will be three applications for such tax credits, according to Mike Mangeot, public relations manager for UPS in Louisville.
The company was approved for USD 15 million in sales tax refunds a year ago. The third application is planned for next year.
UPS announced its Worldport expansion plans in May 2006. UPS received preliminary approval for USD 31.6 million in tax incentives for up to 10 years when the project was announced. Those incentives were based on job creation. The expansion of Worldport is expected to create 1,284 full-time jobs and 3,787 permanent part-time positions.
UPS already is one of the largest employers in Kentucky, with more than 20,000 workers.
The project began last summer and is on schedule, Mangeot said. The first phase is expected to be finished in 2009 and the entire project in 2010.
Read MoreUPS selling Sinotrans stake for HKD 462.5m
United Parcel Service has offered to sell its entire stake in Sinotrans for as much as HKD 462.48 million, further cutting its ties with the mainland courier service provider after buying out their express delivery joint venture in 2005.
UPS was selling 124.65 million Sinotrans shares at between HKD 3.56 and HKD 3.71 each, a 2 per cent to 6 per cent discount to the stock’s closing price of HKD 3.79 yesterday, according to a term sheet sent to fund managers.
The shares represent 7 per cent of the Beijing company’s issued H shares or 2.9 per cent of its total issued share capital. Citigroup was the sale arranger.
UPS, one of the world’s leading package delivery companies, bought the stake when Sinotrans went public in February 2003.
The two companies parted ways in 2005 when UPS paid USD 100 million to buy Sinotrans’ 50 per cent stake in their venture after Beijing opened the market to foreign firms under its World Trade Organisation accession commitments.
Sinotrans also has a venture with Deutsche Post, the parent company of DHL, which raised its stake in the mainland firm to 13.3 per cent from 11.3 per cent in December 2005.
The company formed an express airline joint venture this year with Korean Air Lines, the world’s largest international air cargo carrier, to tap the mainland’s growing exports.
Sinotrans, the listed flagship of state-owned China National Foreign Trade Transportation (Group), saw its net profit drop 28 per cent to 618.8 million yuan last year due to declining freight rates.
Shares of Sinotrans fell 3.81 per cent yesterday, closing at HKD 3.79. The stock had surged 22 per cent over the past three months on speculation its parent would inject more assets into the firm and eventually list the entire group.
Read MoreSaudi Arabia: New UPS Express Center opens in Hail
EIRAD, the authorized service contractor of UPS in Saudi Arabia, announces the opening of the new UPS Hail Express Center in order to accommodate the growing demand for express deliveries from customers in the region.
In order to provide the swiftest service, the center is staffed by UPS customer service representatives who can assist customers with a variety of services, including shipping documentation, packaging and labelling. A package can be shipped from the Hail Express center to any of the 200 countries and territories worldwide that UPS serves. With a growing network of UPS Express Centers, UPS and EIRAD chose Hail as their newest location to better serve customers. Hail city has grown rapidly in the last few years because of its strategic location only an hour’s flight away from 11 Arab capitals.
Moreover, the construction of the new Hail Economic City is boosting investments in the region. As the city is heading towards a bright economic future, shipping needs in the region are expected to grow quickly with the rise in residents and businesses. With almost a hundred years of experience behind it, UPS is perfectly positioned to help businesses of all types and sizes across the Kingdom grow and be successful in the global marketplace.
Hail Express Centre is the 16th of the network of centers and will serve the central province together with the UPS Express centers of Riyadh, Al Faisaliah and Buraidah. Seven more UPS Express Centers are located in the Western province and five others in the Eastern Province.
Read MoreUnion seeks election for UPS workers
A national United Parcel Service Inc. employee union debate saw local action in Kansas City on last Monday 25th.
Officers of the Association of Parcel Workers of America submitted a petition to the National Labor Relations Board’s regional office in Overland Park to have an election deciding who should represent the workers. For a petition to be valid, more than 30 percent of work site employees must have requested it.
The Kansas City UPS freight terminal has nearly 400 workers.
Leaders of the APWA movement, both tractor-trailer drivers for UPS, say the current representative group, the International Brotherhood of Teamsters, has mismanaged pension money, causing deficiencies and “severe” cuts in 2004.
The 0group hopes to have all voting completed by the end of the year, which means a series of regional votes for freight groups and one national vote for package groups. The group began collecting employee signatures on Feb. 26 to authorize the vote.
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