UPS unveils largest PHL investment with $80-million Clark logistics hub

Logistics giant United Parcel Service, Inc. (UPS) has unveiled its new $80-million international air hub in Clark, Pampanga, its largest investment yet in the Philippines, aimed at enhancing its services across more than 1,000 global trade lanes while expanding local businesses’ access to global markets.

Strategically located at Clark International Airport (CRK), the new 30,000-square-meter UPS Clark Hub is 15 times larger than its predecessor and has increased UPS’ average daily handling capacity from 5,000 to 46,000 packages.

“This $80-million investment allows us to better serve our customers,” Albert Sapaen Jr., general manager of UPS Clark Hub, said in an interview during the hub’s media tour on Wednesday.

“(This) gives them better access to global markets, faster transit times, and overall better service, which will help them grow,” he added.

The hub is the company’s biggest investment in the Philippines to date and one of its largest in Asia-Pacific (APAC), enhancing UPS’ services across its 1,100 international trade lanes, Mr. Sapaen said.

The logistics company said the new hub is also part of its investment in a stronger, more resilient Asia-Pacific logistics network amid ongoing trade complexities, with Clark serving as a vital location.

“Clark is strategically located, I think within a three-hour flight, with many manufacturing locations around Asia-Pacific. So we do see this location as an ideal one,” Daryl Tay, president of UPS North Asia and APAC operations and strategy, said during a press briefing.

Since the hub opened, transit times have been reduced to as little as one business day, thanks to the facility’s increased capacity and state-of-the-art equipment that help automate operations. New trade points have also been added.

This means local sectors that rely on exports and imports, such as semiconductors, micro, small and medium enterprises (MSMEs), and healthcare, will have more opportunities for faster trade, Mr. Sapaen said.

“This facility boosts the capabilities of our MSMEs and our premium segments such as healthcare to be able to leverage on our existing network,” Mr. Sapaen told BusinessWorld.

He added that the new hub has also generated 600 jobs, with the majority of employees residing in Pampanga.

Moving forward, Mr. Tay said UPS is actively exploring strategies to expand its footprint in the Philippines and the Asia-Pacific region as it seeks to better connect Asia to the rest of the world and serve growing, increasingly sophisticated markets such as pharmaceuticals and automotive.

The UPS investment comes as the Philippine logistics market is expected to grow to $28 billion by 2031 from $18 billion in 2025 at an average annual growth rate of 9.2%.

INSIDE UPS’ NEW CLARK HUB
On Wednesday, BusinessWorld participated in a media tour to see the new UPS Clark Hub firsthand.

Apart from its much larger capacity compared with the previous facility, the new hub now houses UPS Philippines’ first automated small-package sorting system. The company said it can process up to 9,000 small packages weighing less than three kilograms per hour.

The hub can also handle temperature-sensitive packages, such as pharmaceuticals, as it now houses three refrigeration and freezer units with temperatures ranging from -20°C to 25°C.

BusinessWorld also had the opportunity to see the inside of a Boeing 747-8F, the logistics giant’s largest aircraft in its fleet.

The new UPS Clark Hub is the latest in a series of investments by the $88.7-billion company in its Asia-Pacific network as it seeks to make its services more resilient. — Edg Adrian A. Eva