UPS, one of the world's top-four express-service providers, announced yesterday it was moving its China headquarters to Shanghai from Hong Kong, following the lead of an increasing number of its customers.
Lured by the growing demand for package delivery in Shanghai and its neighboring provinces, UPS is moving its China senior executives to the city. The headquarters will oversee business for the mainland, Hong Kong, Macau and Taiwan, said Perry Chao, UPS' China senior vice president.
"With many of our customers, especially electronic companies, setting up plants in the Yangtze River delta, we found this region contributed a significant part to the growth of our China revenue," he said.
UPS' China turnover increased more than 40 percent in the first quarter of 2003 year-on-year. Annual sales rose 45 percent last year.
No figures were provided. Chao said its sales from the Yangtze River delta had pulled even with that of the Pearl River delta.
UPS' rivals had also achieved growth rates of more than 30 percent on the mainland, taking advantage of the growing number of high-tech companies which prefer air transportation over shipping.
To strive for greater share in the fast-growing market, couriers typically plan more services or reduce delivery time.
Last month, DHL Worldwide Express, one of UPS' major rivals, began offering overnight delivery for its Shanghai customers.
In April, Dutch-based TNT partnered with China Post to take advantage of each other's delivery network. The two jointly set up a team to explore cooperation in fields like postal service, express and logistics service.
Last year, UPS had a total sales volume of US$31.3 billion worldwide, 3.13 percent higher than 2001.
(Shanghai Daily July 4, 2003)
