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New UPS Hub to Connect Calgary to the World

February 22, 2010   |  

$30 Million Airport Facility to Expedite International Shipments

MISSISSAUGA, ON, Feb. 22 /CNW/ - UPS (NYSE:UPS) today announced the official opening of its new distribution centre at the Calgary International Airport (YYC), a state-of-the-art hub to provide businesses with direct access to the U.S. and international markets.

The facility, built at a cost of $30 million, will be central to the continued growth of Alberta's economy, allowing local businesses to tap into global growth markets such as China, India and Mexico.

"Despite the recent recession, Calgary's economy still stands as a growth engine for Canada with many businesses in the area looking to take advantage of emerging markets overseas," said Mike Tierney, president of UPS Canada, who was joined by UPS International President Dan Brutto for the official opening.

"The rise of middle classes in China and India offers great potential to businesses in the Calgary area," Tierney continued. "And this new facility will provide our customers with access to those markets in a more convenient and reliable fashion than ever before."

Economists predict China will become the biggest economy in the world by 2050, while the rise of the middle class in India serves as a boon to entrepreneurs in Canada looking to capitalize on consumer demand for western goods. In 2008, India's purchasing power parity stood at US $2.3 trillion, while China's stood at US $8 trillion.

The 145,000-square-foot distribution facility has been under construction since June of 2008 and will allow UPS to double its package processing capability. The hub houses 157 trucks for ground transportation to surrounding communities in addition to serving as a staging point for aircraft.

The facility also will serve to boost the local economy by employing more than 400 Calgarians and contributing to the transportation sector - one of the few sectors to see growth during the 2009 recession.

The new hub will sort and distribute both air and ground packages and is a direct response to a surge in UPS business. The global logistics company's shipment volume from the Calgary area has increased 60 per cent since 2003.

The UPS facility is part of the YYC Global Logistics Park, a highly efficient and multifunctional international trade and transportation hub that moves high volumes of goods to and from local, regional and international destinations.

"The new UPS facility is a welcome addition to the YYC Global Logistics Park," said Stephan Poirier, vice president and chief commercial officer. "Over the last decade YYC has solidly established itself as a major transportation and logistics hub in North America, making it a strategic location where cargo and passenger airlines can develop a strong link with their customers in Western Canada and around the globe."

Air cargo tonnage has more than doubled at YYC from 66,000 tonnes in 1999 to 134,000 tonnes in 2007. Today, YYC generates more than $6 billion of annual economic activity, accounting for approximately 10 per cent of Calgary's gross domestic product. More than 15,000 people work on airport land.

 
About The Calgary Airport Authority

The Calgary Airport Authority is a not-for-profit, non-share capital corporation incorporated under the Alberta Regional Airports Authorities Act. Since 1992, it has been responsible for the management, maintenance and development of Calgary International Airport and Springbank Airport under long-term lease from the Government of Canada. Since assuming responsibility for Calgary International Airport in 1992, the Authority (http://www.calgaryairport.com/) has invested more than $1 billion in capital and expansion projects while paying over $330 million in federal airport rent tax to the Government of Canada. Appointers to The Calgary Airport Authority Board of Directors are the Calgary Chamber of Commerce Long Range Planning Committee, City of Calgary, Municipal District of Rocky View and the Government of Canada.

About UPS

UPS (NYSE: UPS) is the world's largest package delivery company and a global leader in supply chain and freight services. With more than a century of experience in transportation and logistics, UPS is a leading global trade expert equipped with a broad portfolio of solutions. Headquartered in Atlanta, GA., UPS serves more than 200 countries and territories worldwide. The company can be found on the Web at UPS.com. To get UPS news direct, visit pressroom.ups.com/RSS.



/NOTE TO PHOTO EDITORS: A photo accompanying this release is available at http://photos.newswire.ca/. Images are free to accredited members of the media/

For further information: Shauna MacDonald, Brookline Public Relations, Inc., t: (403) 538-5645, c: (403) 585-4570, smacdonald@brooklinepr.com