UPS is expanding its presence at Hong Kong International Airport with the development of a huge new facility on the back of growing demand.
The express giant has entered into an agreement with Hong Kong Airport Authority (HKAA) to develop a 20,000 sq m facility with direct access to aircraft and located close to the Hong Kong-Zhuhai-Macau Bridge.
The hub will be built to handle around 1m tons per year and will serve as UPS Hong Kong’s main facility for processing and sorting imports, exports and transshipments to and from Europe, the US and other parts of Asia.
It is being developed as part of UPS’ expansion plans to support increasing demand in the Greater Bay Area.
Daryl Tay, president of UPS north Asia district, said: “Hong Kong continues to be an engine of growth and a critical part of UPS’s global smart logistics network.
“This new hub, along with our existing operations at Shenzhen Bao An Airport, demonstrate our continued commitment to Asia. We will continue to invest in areas of our network that bring unique value to our customers and create additional growth opportunities for UPS.”
In terms of technology, the facility will be fully automated with scanning and sorting technology.
The hub will also consolidate some of UPS’ smaller and separately located facilities in Hong Kong.
Fred Lam, chief executive of AAHK said: “We have long embraced the growing importance of e-commerce in global trade and have been taking forward several strategic new facilities in order to capture the new opportunities and further sharpen our competitiveness in air cargo.
“UPS’s new facility is another important addition to our portfolio of cargo facilities which will help HKIA strengthen its position as a leading global air cargo and e-commerce fulfillment hub.”
Last year the airport handled 4.2m tonnes of cargo and when the third runway system is fully implemented next year, it will have an annual capacity of 10m tonnes.
UPS is not the only express firm that is expanding in Hong Kong. In November, DHL Express expanded its Central Asia Hub (CAH) facility at the airport.
DHL has expanded the facility by 50% to 49,500 sq m and added an automated material handling system.
