UPS building new Clark hub to boost Asia-Pacific network
MANILA, Philippines — Global logistics company UPS will construct a new hub at Clark International Airport next year to beef up its supply chain and logistics services amid the e-commerce boom.
For this project, UPS inked a strategic partnership with Luzon International Premiere Airport Development Corp. (Lipad), operator of the Pampanga gateway.
The company will begin building the facility by February 2025 as it targets to operate it the following year. Inquirer reached out to UPS for additional details about the expansion plan, but the company has yet to give a response.
“The investments UPS continues to make through this expansion will enhance time in transit across Asia-Pacific and continue to deliver service reliability for our customers and position UPS for long-term growth,” UPS Asia-Pacific president Wilfredo Ramos said.
Job opportunities
Lipad chair Josephine Gotianun-Yap said the project would “bring positive changes to Pampanga, providing job opportunities for the local community and serving as an economic stimulus in the region.”
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The new hub is part of the logistics company’s $250-million investment commitments in the Asia-Pacific, covering Singapore, Japan, China, Vietnam, South Korea and Taiwan.
Recently, UPS also announced the construction of a new hub at the Hong Kong International Airport, which will process cargo shipments to and from Europe, the United States and other parts of Asia.
In November last year, UPS announced the completion of the expansion of its package sorting hub in Clark. It nearly doubled the facility’s capacity, allowing it to process up to 30 percent more packages per hour.
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A study by Google, Temasek, and Bain & Co. projects the Philippines’ e-commerce sector will be worth $22 billion by 2025. A significant player in the e-commerce ecosystem is the last-mile delivery service provider such as UPS, who makes sure that products are received by shoppers.
Lipad president and CEO Noel Manankil said UPS’ expansion is in line with Clark airport’s goal of positioning itself as a logistics hub for international brands.
Apart from UPS, aircraft maintenance, repair and overhaul provider Lufthansa Technik Philippines is also planning to spend P15 billion to establish operations in Clark by 2026.
