UPS 2008 Annual Report Download - page 24

Download and view the complete annual report

Please find page 24 of the 2008 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 120

  • 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
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120

Over the past five years, UPS has made a successful transition to become the first wholly-owned foreign
express carrier in China. In 2008, we opened the UPS International Air Hub at Pudong International Airport,
which was built on a parcel totaling 1 million square feet with a planned sorting capacity of 17,000 packages per
hour. The new hub links all of China via Shanghai to UPS’s international network with direct service to the
Americas, Europe and Asia. It also connects points served in China by UPS through a dedicated service provided
by Yangtze River Express, a Chinese all-cargo airline.
In the fourth quarter of 2008, we began construction of a new intra-Asia air hub at Shenzhen International
Airport in China. Once completed, the Shenzhen facility will replace our current intra-Asia air hub at Clark Air
Force Base in the Philippines, and will serve as our primary transit hub in Asia. The facility is expected to open
in 2010. The facility is being built on a parcel of almost 1 million square feet, and will have a planned sorting
capacity of 18,000 packages per hour.
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, 2008:
Description
Owned and
Capital
Leases
Short-term
Leased or
Chartered
From
Others
On
Order
Under
Option
McDonnell-Douglas DC-8-71 .................................. 19 — — —
McDonnell-Douglas DC-8-73 .................................. 25 — — —
Boeing 747-100 ............................................. 7 — — —
Boeing 747-200 ............................................. 4 — — —
Boeing 747-400F ............................................ 7 — 5 —
Boeing 747-400BCF ......................................... 2 — — —
Boeing 757-200 ............................................. 75 — — —
Boeing 767-300 ............................................. 32 — 27 —
Boeing MD-11 .............................................. 38 — — —
Airbus A300-600 ............................................ 53 — — —
Other ...................................................... — 309 — —
Total .................................................. 262 309 32 —
We maintain an inventory of spare engines and parts for each aircraft.
All the aircraft we own meet Stage III federal noise regulations and can operate at airports that have aircraft
noise restrictions. We became the first major airline to successfully operate a 100% Stage III fleet, more than
three years in advance of the date required by federal regulations.
During 2008, we took delivery of four Boeing 747-400F aircraft and two Boeing 747-400BCF aircraft. We
have firm commitments to purchase 27 Boeing 767-300ER freighters to be delivered between 2009 and 2012,
13