UPS 2010 Annual Report Download - page 15

• Through more than two dozen alliances with Asian delivery companies that supplement company-
owned operations, we serve more than 40 Asia-Pacific countries and territories. One of the fastest
growing economies in the world, China, is among our most promising opportunities.
• Our Canadian operations include both domestic and import/export capabilities. We deliver to all
addresses throughout Canada.
• We are also the largest air cargo carrier in Latin America and the Caribbean.
We have built a strong international presence through significant investments over several decades. Some of
our recent acquisitions and investments include the following:
• In 2008, we completed construction of a new hub in Tamworth, England, UPS’s largest ground hub
outside the U.S. It replaced three smaller facilities, and added more capacity and better efficiencies
than existed with the three separate facilities.
• Also in 2008, we acquired our partner’s interest in the small package joint venture operation in
Romania.
• In 2009, we expanded our presence in Eastern Europe and in Central Asia with the acquisition of our
service agents in Slovenia and Turkey, respectively.
• Also in 2009, we set up a joint venture in Dubai to coordinate management and growth of UPS express
package, freight forwarding and contract logistics services across the Middle East, Turkey and portions
of Central Asia.
• In 2010, we established or expanded relationships with alliance partners in Vietnam, Malaysia and
Indonesia.
• Also in 2010, we submitted an application for a domestic service license in China. We believe that we
will receive approval in 2011.
Growth in Asia is being driven by global demand, which is stimulating improved demographic and
economic trends throughout the region, particularly in China. Over the last few years, UPS has steadily increased
air service between the U.S. and Asia.
• In 2008, we opened a new air hub in Shanghai, the first constructed in China by a U.S. carrier. It 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.
• Also in 2008, we acquired our partner’s interest in a small package shipping joint venture in Korea.
• In 2010, we opened a new Intra-Asia air hub. The Shenzhen Asia-Pacific Hub, located at Shenzhen
Baoan International Airport in China’s thriving Pearl River Delta, replaced a UPS hub in the
Philippines. The hub represents an investment of $180 million and has reduced shipment time-in-transit
by at least a day for customers in the region.
The international package delivery market has been growing at a faster rate than that of the U.S., and our
international package operations have historically been growing faster than the market. We plan to use our
worldwide infrastructure and broad product portfolio to grow high-margin premium services. Additionally, we
plan to expand our non-U.S. domestic package operations by continuing to build our package delivery
infrastructure and through acquisitions in certain countries. We have been and will continue to implement cost,
process and technology improvements in our international operations. We believe that both Europe and Asia
offer significant opportunities for long-term growth.
Supply Chain & Freight
The Supply Chain & Freight segment consists of our forwarding and logistics capabilities as well as our
UPS Freight business unit.
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