UNITED Parcel Service, Inc. (UPS) has increased its cargo handling capacity at Clark International Airport more than ninefold with the opening of an $80-million international air hub, as the logistics company seeks to strengthen the Philippines’ connections to regional and global trade networks.
The expanded facility, inaugurated on Thursday at the Clark Freeport Zone in Pampanga, can handle an average of 46,000 packages daily, up from 5,000 at its previous facility, UPS said in a statement.
The 30,000-square-meter hub replaces a smaller facility that the US-based logistics company had operated in Clark since 2002, expanding its operational footprint by 15 times.
UPS said the facility operates 170 weekly flight segments connecting Clark to major commercial hubs across Asia-Pacific, Europe, and the United States.
The expansion is expected to improve access to more than 1,100 global trade lanes, with UPS offering next-day delivery to major Asian markets and transit times as short as two business days to destinations outside the region.
“A shipment moving through Clark becomes part of a global network that connects businesses to suppliers, manufacturers, customers, and markets around the world,” UPS Executive Vice-President and Chief of International Healthcare and Supply Chain Solutions Wilfredo Ramos said during the inauguration.
The facility has a peak automated sorting capacity of 15,000 packages per hour, according to a company briefer.
It also features an automated system capable of sorting up to 9,000 small packages per hour and three temperature-controlled refrigeration units operating at temperatures ranging from minus 20°C-25°C to accommodate pharmaceutical and healthcare shipments.
President Ferdinand R. Marcos, Jr., who attended the inauguration, said the investment could help strengthen the country’s logistics infrastructure and support business activity outside Metro Manila.
“This completion is an important development for Clark, bringing new opportunities for employment and business growth outside Metro Manila,” he said.
The facility has generated nearly 600 local jobs, primarily for workers from Pampanga and neighboring provinces, according to UPS.
Mr. Marcos also cited the country’s high logistics costs as a continuing challenge for businesses.
“Yet, our logistics sector continues to face challenges, particularly the high cost of moving goods across our archipelago,” he said.
He said freight and distribution expenses in the Philippines account for as much as 27% of sales, a ratio he described as among the highest in Southeast Asia.
“For an archipelagic country such as the Philippines, efficient logistics is vital to economic development and the well-being of our people,” Mr. Marcos said.
“With an estimated investment of $80 million, the facility reflects the confidence of our private sector partners in the Philippines and our shared commitment to strengthening the country’s logistics infrastructure,” he added.
Mr. Ramos said the Clark expansion forms part of UPS’ broader investments in its regional network, which include facilities in Taiwan, Hong Kong, and South Korea.
The project was supported by the Bases Conversion and Development Authority, Clark Development Corp., and airport operator Luzon International Premiere Airport Development Corp. as part of efforts to strengthen logistics connectivity within the Luzon Economic Corridor. — Erika Mae P. Sinaking