UPS Expands Logistics Options for Intra-Asia Customers

The company's supply chain solutions division to build a distribution, logistics hub within the Airport Logistics Park Singapore

The company's supply chain solutions division to build a distribution, logistics hub within the Airport Logistics Park Singapore

Changi Airport, Singapore — April 7, 2005 — UPS has launched an effort to extend new freight and logistics options to customers doing business within Asia.

While trade to and from Asia, particularly China, has attracted much attention in recent months, UPS said there also is rising demand for improved air freight and logistical options for goods moving within Asia.

The company added that the business demands and lengthy trade lanes within the region underscore a need for fast and flexible supply chains.

"The need for regional distribution, replenishment and logistics services continues to grow, particularly in the south Asia region," commented John Hafferty, UPS Supply Chain Solutions vice president for Asia operations. "We're expanding to provide more regional distribution services."

As part of the effort, UPS Supply Chain Solutions is building a distribution and logistics hub in Singapore within the Airport Logistics Park Singapore, or ALPS. The 425,000-square-foot facility, scheduled to open in early 2006, will serve as one of the company's key operations centers for south Asia.

UPS has had a presence in Singapore since 1988. The new facility is close to the ocean port, allowing UPS to provide air and ocean freight and logistics activities in a single hub. According to UPS, this will enable large shipments to be shipped to Singapore where they can then be broken down into smaller shipments for re-distribution to their final destinations. The facility will also be capable of providing specialty services such as kitting, critical parts distribution, returns and repair and warranty management.

ALPS is Singapore's first logistics Free Trade Zone (FTZ) and opened in March 2003. It is located adjacent to the Changi Airport.

Because the UPS Supply Chain Solutions facility is located within the FTZ, customers can save time and money on documentation, customs clearance and transportation. For example, the Goods and Services Tax is suspended within the FTZ until the cargo is redistributed. And since ALPS has a dedicated customs checkpoint, the process of customs clearance averages eight minutes or less.

"This ALPS location provides the flexibility that we need for greater speed and efficiency in transportation and documentation, and allows UPS to expand freight capabilities and provide the distribution services this region needs," Hafferty added.

"We are excited about UPS's latest expansion," said Manohar Khiatani, director for Logistics & Transport Engineering, Singapore Economic Development Board. "This is a clear vote of confidence that Singapore is an attractive and competitive location for UPS to serve its global customers. We are committed to strengthening our capabilities and infrastructure to address the changing needs of businesses."

The logistics and distribution facility, which will increase by 50 percent the company's logistics and distribution operations in Singapore, is part of UPS's commitment to growth in Asia, the company said. UPS Supply Chain Solutions recently announced a building program in China that will add 20 additional facilities through 2006. In addition to the logistics and distribution business, the UPS package operation's Asia headquarters is located in Singapore.

For more information on the latest trends in the logistics space, see the article "The Analyst Corner: Fulfillment & Logistics" in the October/November 2004 issue of Supply & Demand Chain Executive.