UPS announced the expansion of its presence in China with the addition of two new contract logistics distribution facilities in Chengdu and Shanghai, bringing the total to more than 130 contract logistics facilities, covering 87 cities. The contract logistics facilities will provide distribution and warehousing solutions to shippers who want to reach customers within China.
According to a recent World Bank report, China is the second largest global economy and the world’s largest exporter and manufacturer of goods. The World Bank report continues to predict that China will be the world’s largest economy by 2030. “UPS is committed to supporting emerging market demand and helping customers expand into new markets in China,” said Jim Barber, President UPS International. “Expansion efforts, such as the opening of these two facilities, will bring unmatched resources to our customers looking for a national distribution platform in China.
Keeping with the Chinese government’s strategic “Go West” initiative, the new Chengdu facility offers more than 47,000 square feet of warehousing and distribution space. It provides multinationals looking to conduct business in the region with access to central and western China and the growing cities of Chengdu and Chongqing. The facility is located 2.5 miles from the Chengdu Shuangliu International Airport, which facilitates convenient access to major foreign markets and is in close proximity to major interstate roads, putting two-thirds of China’s Southwest population within a day’s drive.
The new Shanghai facility consists of more than 70,000 square feet of distribution space and is less than two miles from the UPS International Hub at Shanghai’s Pudong Airport, China’s largest airport by air cargo volume. The close proximity to the hub enables later cut-off times for express and freight exports to key markets in North America, Europe and within Asia. The new facility, UPS’s fourth in the area, is designed to meet the needs of multinational companies looking to increase their business operations in the domestic Shanghai market.
For its part, A.P. Moller – Maersk’s Damco subsidiary has commenced offering its customers access to the frontier market of Myanmar, after being granted a permanent license in July to operate under its own legal entity in the country, making the company one of the first supply-chain solution providers to offer genuine end-to-end logistics services there.
Myanmar, with about 60 million people, is implementing reforms and was opened to business in 2012 with companies from the U.S., Europe and beyond. Damco is helping its customers reduce short- and long-term business volatility in this new market by working closely with U.K.-based Institute for Human Rights and Business and Danish Institute for Human Rights to ensure the UN Guiding Principles on Human Rights are applied.
Back in May 2012, Damco participated as part of a larger fact-finding mission, which involved consulting with NGOs, local companies and diplomats. Subsequently, a resource centre was established within the British Council in Yangon. Since then, an experienced business development manager has been accompanying some of Damco’s most important customers to meet local trade associations, conduct market studies and look at both vendor sourcing and setting up CFS (Container Freight Station) and CY (Container Yard) operations on the ground.
“Damco is a first-mover logistics company in Myanmar. We have an immediate implementation plan as well as a long term one to set up logistics capability and infrastructure in Myanmar. This will allow our customers to open up their supply chains and sourcing operations in the country, while ensuring the highest standards are met in terms of meeting the principles of the UN Global Compact,” commented Damco Cluster Manager Kiattichai Pitpreecha.
Now that the company has obtained a long-term license to operate, it has commenced implementing a plan of investment to ensure its current consolidation and container deployment activities are extended in the years to come. Damco has made initial steps for setting up its own office in Myanmar, and the company has already set up a container freight station operation in Yangon, having been awarded business by several of its global accounts to manage their first shipments from Myanmar.