UPS 2013 Annual Report Download - page 19

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Additional International highlights include the following:
• 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.
• In 2013, we purchased the assets and operations of two Costa Rican based firms: small package delivery company
Union Pak de Costa Rica, S.A., and brokerage company SEISA Brokerage. Both companies have long-standing
relationships with UPS as Authorized Service Contractors (ASC). These additions will allow us to better connect
Costa Rica's expanding economy to regional and world markets through the UPS network. For Costa Rican shippers,
UPS will be better positioned to provide customers one source for small package, freight forwarding, brokerage, and
contract logistics, with a stronger link to UPS's global transportation network. Access to multi-modal services
including ocean and air freight will improve customers' ability to ship across borders, boosting export trade lanes
within Latin America and to the U.S.
• We continue to grow our business organically in Mexico. We are well positioned with freight, domestic, international
and distribution services. We opened ten new UPS Express centers in Mexico, located in strategic zones including
Monterrey, Tijuana, Chihuahua, Veracruz, León, and Distrito Federal. These new centers are aimed at increasing our
presence among small and medium enterprises and the retail sector.
• We became the first global express delivery company to have a wholly-owned subsidiary in Vietnam, following our
acquisition of the 49% interest held by VN Post Express in our express delivery joint venture. This change allows us
to better connect Vietnam's rapidly expanding economy to world markets through the UPS network.
• 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.
Supply Chain & Freight Reporting Segment
The Supply Chain & Freight segment consists of our forwarding and logistics services, our UPS Freight business, and our
financial offerings through UPS Capital. Supply chain complexity creates demand for a global service offering that
incorporates transportation, distribution and international trade and brokerage services, with financial and information services.
We meet this demand by offering a broad array of supply chain services in over 195 countries and territories, which are
described below.
The 2011 acquisition of Italy-based Pieffe Group (“Pieffe”) supports our global health care strategy, which has enabled us
to make investments to better serve our growing customer base in the pharmaceutical, biotech and medical device industries.
Pieffe is a pharmaceutical logistics business with more than 35 years of experience offering high-quality storage, distribution
and cold chain solutions to some of the world’s leading pharmaceutical brands.
Our 2013 purchase of Hungary-based pharmaceutical logistics company, CEMELOG Zrt ("Cemelog"), is part of our
ongoing global growth and investment strategy. This acquisition further strengthens UPS's health care reach and expertise in
Europe, enabling comprehensive, compliant services to customers in the pharmaceutical, biotech, and medical device industries
across the increasingly important markets of Central and Eastern Europe.
We expanded our presence in China with the addition of two new contract logistics facilities in Chengdu and Shanghai,
bringing the total to more than 130 owned and agent contract logistics facilities, covering 87 cities. These facilities provide
distribution and warehousing solutions to shippers who want to reach customers within China and demonstrate our continued
commitment to serving China's emerging middle class. UPS also opened our new health care facility in Hangzhou, Zhejiang
Province, China; this move represents a significant expansion of our Asia health care distribution network. This state-of-the-art
facility has industry-leading technology to maintain product safety and integrity and is designed to offer seamless, global
solutions to health care companies looking to expand into, transport within, and export from China.
Freight Forwarding
UPS is one of the largest U.S. domestic air freight carriers and among the top international air freight forwarders globally.
UPS offers a portfolio of guaranteed and non-guaranteed global air freight services. Additionally, as one of the world’s leading
non-vessel operating common carriers, UPS also provides ocean freight full-container load and less-than container load
shipments between most major ports around the world.