UPS 2006 Annual Report Download - page 28

Download and view the complete annual report

Please find page 28 of the 2006 UPS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 111

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111

facility. We also have regional air hubs in Columbia, SC; Dallas, TX; Hartford, CT; Ontario, CA; Philadelphia,
PA; and Rockford, IL. These hubs house facilities for the sorting, transfer and delivery of packages. Our
European air hub is located in Cologne, Germany, and our Asia-Pacific air hub is located in Taipei, Taiwan. Our
intra-Asia air hub is located at Clark Air Force Base in Pampanga, Philippines, our regional air hub in Canada is
located in Hamilton, Ontario, and our regional air hub for Latin America and the Caribbean is in Miami, FL.
In 2006, we announced a major expansion to our Worldport facility that will increase the sorting capacity
over the next five years by 60 percent to 487,000 packages per hour. The expansion involves the addition of three
aircraft load / unload wings to the hub building, followed by the installation of high-speed conveyor and
computer control systems. The overall size of the Worldport facility will increase by 1.1 million square feet to
5.1 million square feet, and the facility will be able to accommodate the Airbus A380-800 and Boeing 747-400
aircraft currently on order. The expansion will cost over $1 billion and is expected to be completed by 2010.
In 2006, we closed the former Menlo Worldwide Forwarding air freight facility in Dayton, OH, and
integrated the former Menlo Worldwide Forwarding air freight business into other UPS facilities, including a
new facility in Louisville consisting of approximately 715,000 square feet and five new regional air freight
facilities in Ontario, CA; Rockford, IL; Dallas, TX; Philadelphia, PA; and Columbia, SC that have a combined
square footage of 269,000.
Our primary information technology operations are consolidated in a 435,000 square foot owned facility, the
Ramapo Ridge facility, which is located on a 39-acre site in Mahwah, New Jersey. We also own a 175,000 square
foot facility located on a 25-acre site in Alpharetta, Georgia, which serves as a backup to the main information
technology operations facility in New Jersey. This facility provides production functions and backup capacity in the
event that a power outage or other disaster incapacitates the main data center. It also helps us to meet our internal
communication needs.
We believe that our facilities are adequate to support our current operations.
Fleet
Aircraft
The following table shows information about our aircraft fleet as of December 31, 2006, including the
Boeing 767-300 order discussed further below:
Description
Owned and
Capital
Leases
Short-term
Leased or
Chartered
From
Others
On
Order
Under
Option
McDonnell-Douglas DC-8-71 .................................. 20 — —
McDonnell-Douglas DC-8-73 .................................. 26 — —
Boeing 727-100 ............................................. 29 — —
Boeing 727-200 ............................................. 2 — —
Boeing 747-100 ............................................. 7 — —
Boeing 747-200 ............................................. 4 — —
Boeing 747-400F ............................................ 8 —
Boeing 747-400BCF ......................................... 2 —
Boeing 757-200 ............................................. 75 — —
Boeing 767-300 ............................................. 32 — —
Boeing 767-300ER ........................................... 27 —
Boeing MD-11 .............................................. 34 4 —
Airbus A300-600 ............................................ 53 — —
Airbus A380-800 ............................................ — 10 10
Other ...................................................... — 325
Total .................................................. 282 325 51 10
13