Global logistics service provider UPS and the Hong Kong Airport Authority have entered into an agreement to build a new hub at Hong Kong International Airport and near the Hong Kong-Zhuhai-Macau Bridge.

The hub is expected to be completed by 2028 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, where it has made network and facility enhancements in Singapore, Japan, China, Vietnam, South Korea, and the Philippines.

The future Hong Kong facility is being designed to handle close to 1 million tonnes of annual capacity and will be built on 20,000 square metres of land with direct access to aircraft. The fully automated facility will be powered by state-of-the-art sorting and scanning technology with environment-friendly features.

UPS said this latest investment is part of the company’s expansion plans to support Greater Bay Area growth, as well as evolving customer needs and shipping demand across its air network.

The future UPS hub in Hong Kong will allow the company to optimise its existing operations in Hong Kong by streamlining some smaller and separately located facilities.

“Hong Kong continues to be an engine of growth and a critical part of UPS’s global smart logistics network,” said Daryl Tay, president of UPS North Asia District.

“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.”