UPS and the Shanghai Airport Authority last month conducted a formal signing ceremony in another step towards construction of the UPS International Air Hub at Pudong International Airport in Shanghai.

The UPS International Air Hub, scheduled to open next year, will be the fi rst constructed by a US carrier and will link all of China via Shanghai to UPS international network with direct service to the Americas, 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 hub is a signifi cant step in making the Shanghai Airport an international cargo hub, promoting the development of the Shanghai transportation centre and upgrading the service functions of the city of Shanghai. Under the 2004 Air Services agreement, UPS will fi nd it easier to expand its international and Chinese networks in the future while immediately gaining new flexibility in the way it schedules its fl ights now, the integrator said in a statement.

Located in the southern end of the West Cargo Terminal Area under construction at Pudong International Airport, the new hub will be built on land totaling almost 96,000 square meters (1 million square feet). The hub sorting capacity is projected to reach 17,000 pieces per hour by 2012 and employment should exceed 1,000 by 2010. When the hub opens, it will operate 24 hours a day, seven days a week and UPS will increase its capacity into Shanghai by “up-sizing” aircraft from the current MD-11s to Boeing 747-400s.