UPS 2011 Annual Report Download - page 31

UPS Freight operates 196 service centers with a total of 5.9 million square feet of floor space. UPS Freight
owns 148 of these service centers, while the remainder are occupied under operating lease agreements. The main
offices of UPS Freight are located in Richmond, Virginia and consist of about 240,000 square feet of office
space.
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, Kentucky. The Worldport facility consists of over 5.2 million square feet and
the site includes approximately 596 acres. Between 2009 and 2010, we completed an expansion of our Worldport
facility, which increased the sorting capacity to approximately 416,000 packages per hour. The expansion, which
cost over $1 billion, involved the addition of two aircraft load / unload wings to the hub building, followed by the
installation of high-speed conveyor and computer control systems.
We also have regional air hubs in Hartford, Connecticut; Ontario, California; Philadelphia, Pennsylvania;
and Rockford, Illinois. These hubs house facilities for the sorting, transfer and delivery of packages. Our
European air hub is located in Cologne, Germany, and we maintain Asia-Pacific air hubs in Shanghai, China;
Shenzhen, China; Taipei, Taiwan; Hong Kong; and Singapore. 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, Florida.
In 2011, we announced plans to significantly expand our European air hub in Cologne, Germany. The
expansion project, due to be completed by the end of 2013, will equip the existing facility with additional
state-of-art technology and will include a major extension to the existing building. This extension would be
partially dedicated to processing larger freight shipments. Together these initiatives will significantly increase the
hub’s package sorting capacity from today’s 110,000 to 190,000 packages per hour. The total cost of the
expansion is estimated to be approximately $200 million.
Over the past several 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 2.4 million square feet with a planned sorting capacity of 17,000 packages
per hour. The 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 February 2010, we opened a new intra-Asia air hub at Shenzhen Baoan International Airport in China.
The Shenzhen facility replaced our intra-Asia air hub at Clark Air Force Base in the Philippines, and serves as
our primary transit hub in Asia. The facility was built on a parcel of almost 1 million square feet, and has a
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 to meet
our internal communication needs.
We believe that our facilities are adequate to support our current operations.
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