UPS 2015 Annual Report Download - page 32

Download and view the complete annual report

Please find page 32 of the 2015 UPS annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 148

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148

20
stationed for the pickup of packages, and capacity for the sorting, transfer and delivery of packages. The larger of these
facilities also service our vehicles and equipment, and employ specialized mechanical installations for the sorting and handling
of packages.
We own or lease more than 800 facilities that support our international package operations. In addition, we own or lease
more than 500 facilities, with approximately 32.2 million square feet of floor space, that support our freight forwarding and
logistics operations. We own and operate a logistics campus consisting of approximately 3.7 million square feet in Louisville,
Kentucky.
Our aircraft are operated in a hub and spoke pattern in the U.S., with our principal air hub, known as Worldport, located
in Louisville, Kentucky. The Worldport facility consists of over 5.2 million square feet and the site includes approximately 596
acres with a sorting capacity of approximately 416,000 packages per hour and includes high-speed conveyor and computer
control systems.
We also have regional air hubs in Columbia, South Carolina; Dallas, Texas; 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;
and Hong Kong. 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.
UPS has made a successful transition to become the first wholly-owned foreign express carrier in China. The UPS
International Air Hub at Pudong International Airport, was built on a parcel totaling 2.4 million square feet with a sorting
capacity of 17,000 packages per hour. This 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.
We also have a new intra-Asia air hub at Shenzhen Bao'an International Airport in China. The Shenzhen facility, which
was built on a parcel of almost one million square feet and has a sorting capacity of 18,000 packages per hour, serves as our
primary transit hub in Asia.
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, 2015:
Description
Owned and
Capital
Leases
Short-term
Leased or
Chartered
From
Others
On
Order
Under
Option
Boeing 757-200F 75
Boeing 767-300ERF 59
Airbus A300-600F 52
Boeing MD-11F 38
Boeing 747-400F 11
Boeing 747-400BCF 2
Other 413 — —
Total 237 413 — —
We maintain an inventory of spare engines and parts for each aircraft.
All the aircraft we own meet Stage IV federal noise regulations and can operate at airports that have aircraft noise
restrictions.