UPS Begins Direct Service to China
ONTARIO, Calif.--(BUSINESS WIRE)--March 30, 2001--
"UPS China Express" Departs United States April 1
The inaugural UPS flight to China is poised for takeoff Sunday, landing the company on solid ground to serve one of the world's fastest growing markets.
The company will celebrate the maiden voyage of UPS China Express today at Ontario International Airport, the departure point of Sunday's groundbreaking flight.
The new service will strengthen UPS's global capabilities, improve transit time for shipments and increase reliability. UPS plans to deliver to every address in the People's Republic of China by year's end.
"With these new flights, UPS will offer the broadest portfolio of services to customers shipping to and from China," said Jim Kelly, chairman and CEO of UPS. "It's further proof that UPS is a global carrier that not only moves goods, information and funds but also connects today's global businesses with markets and producers worldwide."
UPS's flight to Beijing and Shanghai will depart just two months after the United States Department of Transportation awarded the company the highly sought-after rights to operate direct air service from the U.S. to China. The company now will operate six UPS Boeing 747 flights a week between the United States and China. Four flights will originate in Ontario, and two will depart from Newark, N.J. The UPS Boeing 747 aircraft has a payload of 240,000 pounds. The direct-to-China service is projected to add approximately $100 million in revenues for UPS in its first full year of operation.
"This first flight is an important event not just for UPS, but for worldwide trade as a whole," continued Kelly. "This is the first time ever that a U.S. cargo carrier will fly directly from the United States to China. We believe this designation is a sign of the growing importance of global trade and UPS's place in the new global marketplace."
Prior to being awarded direct air rights, UPS served China through Hong Kong. The company has been operating in China since 1988 through its partner Sinotrans. UPS China continues to experience rapid growth in that market with export volume in 2000 increasing by more than 45 percent over the previous year.
"UPS expects continued strong and robust growth in China," added Kelly. "We take a long-term approach to any expansion and believe the opportunity in China is great enough to overcome any business cycle."
Delivering Economic Benefits
UPS's direct service to China also is expected to create jobs across all segments of the supply chain. In an economic impact study, Professor David G. Smith of the University of Virginia projected that approximately 46,000 new jobs across a number of economic sectors will be created in the first year of UPS's service to China and more than 84,000 jobs by the end of the fourth year.
Smith also calculates that UPS's service to China will bring approximately $5 billion in new business output to the U.S. economy after the first year of service, with that amount growing to $9.4 billion after four years. He expects economic growth and expansions in trade and investment to continue if China is granted access to the World Trade Organization.
In a letter to UPS, Alan Larson, the U.S. undersecretary of state for economic, business and agricultural affairs, commended the company for its hard work and vision. "In inaugurating its new service to China, UPS has again shown the commitment and determination that has made it an outstanding company," Larson said.
About UPS
Headquartered in Atlanta, Ga., UPS is the world's largest express carrier and package delivery company, serving more than 200 countries and territories worldwide. In 2000, the company reported annual revenues of $29.8 billion on an average volume of 13.6 million packages and documents per day. UPS was chosen for the third consecutive year in 2000 as "The World's Most Admired Company in the Mail, Package and Freight Industry" in a Fortune magazine survey. For more information, visit UPS on the Web at www.ups.com.
CONTACT:
UPS, Atlanta
John Wheeler, 404/828-6463
Rebecca Treacy-Lenda, 404/828-8396
or
Edelman PR
Hope Heyman, 212/704-4512
Kerry Irwin, 212/704-8295
KEYWORD: GEORGIA |
