UPS 2012 Annual Report Download - page 29

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17
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; Incheon,
South Korea; 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-the-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 112,000 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 Bao'an 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 443,600 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.
Fleet
Aircraft
The following table shows information about our aircraft fleet as of December 31, 2012:
Description
Owned and
Capital
Leases
Short-term
Leased or
Chartered
From
Others
On
Order
Under
Option
Boeing 747-400F 11 — — —
Boeing 747-400BCF 2 — — —
Boeing 757-200F 75 — — —
Boeing 767-300ERF 51 — 8 —
Boeing MD-11F 38 — — —
Airbus A300-600F 53 — — —
Other — 332 — —
Total 230 332 8 —
We maintain an inventory of spare engines and parts for each aircraft.
All of the aircraft we own meet Stage IV federal noise regulations and can operate at airports that have aircraft noise
restrictions.
During 2012, we took delivery of seven Boeing 767-300ERF aircraft. We have firm commitments to purchase eight
Boeing 767-300ERF freighters to be delivered in 2013.