Enhancing its local operations by handling more packages daily.
On Thursday, October 15, global logistics giant UPS official opened its new hub at Clark International Airport, which covers 30,000 square meters and is 15 times larger than its predecessor.
Worth more than US$80 million investment the hub will boost services across more than 1,100 global trade lanes, with the company now operating 170 flight segments into and out of Clark every week—which connects businesses across Asia Pacific, India, Europe and the United States in at least one business day.
Accorudng to the company, this hub enables the average daily volume of packages processed through the hub to increase to 46,000 while maximum processing capacity rises to 15,000 packages per hour and has created nearly 600 jobs.
The expansion also includes specialized handling for healthcare, high-tech and manufacturing customers with time-sensitive and temperature-sensitive shipments.
Thus, there are three refrigeration and freezer units, ranging from -20 to 25 Celsius, dedicated re-icing capability and UPS Premier RFID technology to provide priority handling and enhanced visibility for critical and temperature-sensitive healthcare shipments.
The facility also features an automated sorting system, which uses smart technology to process up to 9,000 small packages per hour.
On top of that, the hub utilizes a fleet of electric ground servicing equipment, including cargo tractors, belt and cargo loaders, ground processing units and forklifts, for its ramp operations.
Russell Reed, Managing Director of UPS Philippines, noted: “This is a very special moment for our customers and our company. To enhance services across more than 1,100 trade lanes is incredibly exciting, especially at a time when businesses are facing a unique set of challenges.
He then looked back at the time when they opened their first Clark hub in 2002, and said: “We’re proud to have called Clark home for nearly quarter of a century and we’re delighted that the new UPS Clark hub will continue to provide people and businesses, both in the Philippines and across Asia, with international trade growth opportunities for decades more to come.”
Fot Bernard Jiang, President of UPS Asia Pacific, the from the moment that the new Clark hub was announced in 2024, it already marked the beginning of a “sustained, multi-year investment strategy” to strengthen their Asia Pacific network, and give customers faster connections to support growing trade flows across the region.
PBBM PRAISES COMPLETION OF PROJECT ON TIME
Also present at the opening was Philippine President Ferdinand Marcos Jr., who welcomed the opening of the hub.
“We deeply appreciate UPS for recognizing the Philippines as a strategic investment destination, as demonstrated by its long-standing presence in our country,” he said.
The President also said the facility’s dedicated immigration and customs lanes will help speed up cargo clearance and improve delivery efficiency.
Marcos also said that the facility’s completion marks an important development for Clark, creating more employment and business opportunities outside Metro Manila.
“When an investor promises a project, it is our job to ensure it opens on schedule. This one certainly did,” President Marcos highlighted the reason why these projects must be completed on time to allow businesses and communities to feel the benefits.
Meanwhile, to help ensure that other investments in Clark are completed on time, President Marcos said he has directed the Bases Conversion and Development Authority (BCDA) and the Department of Trade and Industry (DTI) to submit a report on unfinished investment projects, including their target opening dates.
ADDRESSING CHALLENGES IN LOGISTICS SECTOR
The President also underscored the importance of addressing longstanding challenges in the country’s logistics sector, particularly the high cost of transporting goods across the archipelago.
“Our logistics costs account for up to 27 percent against sales, one of the highest in Southeast Asia,” President Marcos said.
He said that congested ports, inadequate road networks, and insufficient cold chain facilities contribute to delivery delays, higher business costs, and increased prices for consumers.
Hence, the President said the Department of Public Works and Highways (DPWH) and the Department of Transportation (DOTr) are improving roads, bridges, and transport systems to better connect agricultural production areas, ports, and business districts.
The government is also pursuing the proposed Subic-Clark-Manila-Batangas Railway, which aims to link major ports through an integrated freight network.
Meanwhile, the DTI has established the Supply Chain and Logistics Center to help businesses access information on suppliers and logistics service providers.
The President also encouraged more private-sector investments in logistics infrastructure to create jobs, expand business opportunities, and improve the country’s access to regional and international markets.
“Skilled jobs are scarce sometimes to find outside Metro Manila. Big investments like this, however, often announced but slow to finish. But this is being changed,” President Marcos also said in his speech.
