UPS and the Shanghai Airport Authority today conducted a formal signing ceremony in another step toward construction of the UPS International Air Hub at Pudong International Airport in Shanghai. Presiding over the ceremony were U.S. Transportation Secretary Mary Peters and Vice Mayor of Shanghai Yang Xiong.

The UPS International Air Hub, scheduled to open next year, will be the first constructed by a U.S.carrier and will link all of China via Shanghai to UPS's international network with direct service to theAmericas, Europe and Asia. It also will connect points served in China by UPS through a dedicated service provided by Yangtze River Express, a Chinese all-cargo airline.
The establishment of the UPS International Air Hub is a significant step in making the Shanghai Airportan international cargo hub, promoting the development of the Shanghai transportation center and upgrading the service functions of the city of Shanghai. Under the 2004 Air Services agreement, UPS will find it easier to expand its international and Chinese networks in the future while immediately gaining new flexibility in the way it schedules its flights now.

The hub project is the latest in a series of strategic initiatives to expand UPS's operations and brand presence in China. In 2005, the company took direct control of its operations, serving more than 330 cities in China representing 85 percent of the country's international trade activity. UPS also expanded its air operations in China throughout 2006 and now flies to more points in China than any other U.S.airline, freight or passenger. The company has grown its China workforce to more than 4,500 employees while also constructing a large logistics infrastructure that includes more than 60 distribution centers.

Over the past five years, UPS has invested approximately $600 million in China, including its successful transition to become the first wholly-owned foreign express carrier in China.