Olongapo SubicBay BatangGapo Newscenter

Monday, October 30, 2006

UPS eyes Clark for intra-Asia warehousing hub

By Riza T. Olchondra - Inquirer

CLARK, PAMPANGA -- United Parcel Service (UPS), a $42.6-billion package delivery and supply chain solutions provider, is considering putting up a warehousing hub in the Philippines to serve the growing demand for supply chain solutions in Asia-Pacific.

Headquartered in Atlanta, Georgia, UPS serves more than 200 countries and territories worldwide.

UPS country manager for supply chain solutions Mark B. Khambatta said in an interview that management was very much interested in expanding in the Philippines. He declined to reveal how much investment was being considered, but said “a substantial amount” would be needed to put up a warehousing hub at the Clark Special Economic Zone.

Khambatta said the warehousing hub would complement the company’s existing sorting and distribution center in Clark.

The 5,900-square-meter facility is currently focused on coordinating package deliveries to and from Asia-Pacific, accommodating up to 11 cargo planes during peak hours from 12 midnight to 4 a.m. daily.

On a weekly basis, Philippines deliveries account for only 10 percent of the hub’s massive sorting and distribution tasks from 120 cargo flights.
UPS’ move is in stark contrast with that of Federal Express (FedEx), another global delivery and logistics company, which is closing its regional transshipment hub at the Subic Freeport Zone in December 2008.

Khambatta said UPS believed the Philippines’ strategic location, the highly developed language skills of the people and government support would make further investments bring positive results for both the country and the company.

Its location, alone, makes the Philippines very attractive as it enables UPS to deliver a package to any Asian country from anywhere in the world within 24 hours of receipt in Clark.


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