Global logistics service provider, UPS, said it will transfer its intra-Asia air hub to Shenzhen from Diosdado Macapagal (Clark) in the Philippines in order "to improve customer service by reducing transit times across Asia."  The 89,000-sq.-m. hub will be operational in 2010 and will "slash at least a day of shipment times-in-transit for Asian customers."

''Shenzhen's strategic location will provide significant time-in-transit and cost advantages, allowing UPS to better serve the growing Asian markets along these rapidly expanding trade lanes,'' said Derek Woodward, president of UPS Asia Pacific.

''We want to be where our customers need us most. Since we began flying directly to China in 2001, we have watched this region grow exponentially not only from a small package perspective but also in heavy air freight.''

Last year, UPS began building an international air hub operation at Shanghai Pudong airport, which, combined with other investments, has seen it spending $600 million in mainland China in the last few years.

Currently, the markets of China, Hong Kong, Japan, Korea and Taiwan account for more than half of the service provider's total intra-Asia volume. Of this, a sizeable proportion of Asia package export volume now originates in Hong Kong and southeast China, where the Shenzhen hub will be located.

''Given the growth in shipping along southern China, it makes sense to sort and dispatch this volume from a hub closer to our customers,'' explained Woodward.

''And in making the switch, because of the growth we're seeing, we intend to build a new sorting hub in Shenzhen with five times the capacity of the existing hub. UPS is very grateful to the Shenzhen government and Shenzhen Airport authority for their strong support of our expansion and we look forward to a successful partnership.''

The Shenzhen Airport Group said in a statement that the partnership with UPS provided significant benefits to the city and airport.

''The establishment of the UPS intra-Asia Air Hub in Shenzhen will provide jobs and boost tax revenues, as well as provide an incentive for other companies to locate to the region. Moreover, rapid and convenient express delivery and cargo service to be offered by UPS will benefit local companies in terms of reducing costs and increasing competitiveness. Ultimately, the Hub provides a huge boost to Shenzhen's goal of becoming a significant international city,'' the statement said.

UPS said it will invest $180 million at Shenzhen, which will include a sorting hub that will have five times the capacity of Clark. The new facility will employ 400 staff and sort up to 36,000 pieces per hour.

Separately, UPS announced the addition of five weekly MD-11 flights to Nagoya. Flights will originate in Anchorage and continue to Shanghai.

Founded in 1907, UPS has grown into a $42.6 billion corporation and today is one of the most recognized and admired brands in the world.