UPS 2007 Annual Report Download - page 27

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Our aircraft are operated in a hub and spokes pattern in the U.S. Our principal air hub in the U.S., known as
Worldport, is located in Louisville, KY. The Worldport facility consists of over 4.1 million square feet and the
site includes approximately 596 acres. We are able to sort over 300,000 packages per hour in the Worldport
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 2007, work continued on our Worldport facility that will increase sorting capacity over the next five years
by 37 percent to 416,000 packages per hour. The expansion involves the addition of two 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 5.2 million square feet, and
the facility will be able to accommodate the Boeing 747-400 aircraft currently on order. The expansion will cost
over $1 billion and is expected to be completed by 2010.
Over the past five years, UPS has invested about $600 million in China, including a successful transition to
become the first wholly-owned foreign express carrier in the country. In 2007, UPS broke ground for the UPS
International Air Hub at Pudong International Airport, which will be built on a parcel totaling 1 million square
feet and will open during 2008. Rapid expansion is planned to a sorting capacity of 17,000 pieces per hour. The
new hub 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.
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.
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