UPS 2011 Annual Report Download - page 18

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• UPS also offers UPS SurePost, an economy residential ground service for customers with non-urgent,
light weight residential shipments. UPS SurePost is a contractual residential ground service that
combines the consistency and reliability of the UPS Ground network with final delivery provided by
the U.S. Postal Service.
International Package Reporting Segment
Our International Package reporting segment includes the small package operations in Europe, Asia, Canada
and Latin America. UPS offers a wide selection of guaranteed, day and time-definite international shipping
services.
• We offer three guaranteed time-definite express options (Express Plus, Express and Express Saver) to
more locations than any other carrier.
• For international shipments that do not require express services, UPS Worldwide Expedited offers a
reliable, deferred, guaranteed day-definite service option.
• For cross-border ground package delivery, we offer UPS Transborder Standard delivery services within
Europe, between the U.S. and Canada and between the U.S. and Mexico.
Europe, our largest region outside of the U.S., accounts for roughly half of international revenue and is one
of our growth engines. Factors contributing to this are the highly fragmented nature of the market and the fact
that exports make up a significant part of Europe’s GDP. Given our well-known, trusted brand and distinctive
integrated network, we believe there is continued strong potential for growth in small package exports in
Germany, the U.K., France, Italy, Spain and the Netherlands. Due to our strong growth, we are expanding our
main European air hub in Cologne by 70% to a capacity of 190,000 packages per hour. Expansion will come in
stages; the first stage was completed in the fourth quarter of 2011 with the final stage targeted for 2013.
Asia is another growth engine due to attractive growth rates in intra-Asian trade and the dynamic Chinese
economy. We are bringing faster time-in-transit to customers focused on intra-Asian trade, reducing transit days
from Asia to Europe, and continuing to build our China presence. Our recent China investments include:
• Material outlays to add capabilities, facilities and quality employees. We are building awareness and
relevance while demonstrating superior UPS performance.
• Opened an air hub in Shenzhen in mid-2010.
• Added intra-Asia and around-the-world flight frequencies allowing customers to reach more of Europe
the next day, guaranteed, than any other express carrier.
We serve more than 40 Asia-Pacific countries and territories through more than two dozen alliances with
local delivery companies that supplement company-owned operations. In Vietnam, our volume has doubled since
entering into an alliance with a local partner in 2010.
Additional International highlights include the following:
• Since our 2009 acquisition of Unsped Paket Servisi San ve Ticaret A.S. in Turkey, we have seen
double-digit export and domestic growth in that country.
• In South and Central America, we benefit from the strong regional economy. Our offerings include
express package delivery in major cities as well as distribution and forwarding.
• We continue to grow our business organically in Mexico. We are well positioned with freight,
domestic, international and distribution services.
• In February 2012 we broadened our European business-to-consumer service portfolio by acquiring
Kiala S.A., a Belgium-based developer of a platform that enables e-commerce retailers to offer
consumers the option of having goods delivered to a convenient retail location.
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