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Monday, April 29, 2024

Clark expects higher cargo traffic after UPS announced hub expansion

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State-run Clark Development Corp. (CDC) said it expects more cargo movement inside Clark International Airport with the planned expansion of United Parcel Service Inc. (UPS), unlocking significant benefits for businesses operating within the Clark Freeport Zone.

The expansion aims to streamline operations within Clark. UPS said that by enhancing efficiency and logistics capabilities, businesses would experience faster delivery times and greater flexibility in their supply chains.

“Asia Pacific continues to be one of UPS’ fastest-growing regions. UPS has continued to invest in our network to maximize speed and flexibility, build solutions addressing the shift of global trade lanes, and offer resilience for our customers,” said UPS Asia Pacific president Wilfredo Ramos.

The expansion is expected to improve the flow of goods across various points of origin and consumption. This would translate into optimized supply chains for businesses engaged in imports, exports and trans-shipments.

Luzon International Premiere Airport Development Corp. (LIPAD), which operates Clark International Airport, sees the UPS partnership as a crucial step to solidify Clark’s position as a top logistics hub for global brands.

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The new UPS hub and network enhancements will significantly reduce transit times for imported, exported and transshipped goods, the logistics company said.

It said this aligns with UPS’ broader strategy of investing in its Asia Pacific network to accommodate the ongoing shifts in global trade routes.

UPS has committed an investment of over $250 million in project since 2023 that underscored their confidence in the potential of CIA.

The new hub is expected to start full operation by 2026. Many businesses and stakeholders within Clark anticipate this development, according to CDC.

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