UPS Will Establish Shanghai Hub for China Service

United Parcel Service Inc. said Thursday it will set up an international air hub in Shanghai for express delivery service in China, Bloomberg News reported.

UPS reached a deal with Shanghai Airport Group to build a hub there in 2007, Bloomberg reported. When its built, the hub would be able to handle 200,000 tons of cargo, UPS said in a statement.

The hub would be UPS’s first one in China, Bloomberg said. UPS, along with FedEx Corp. and DHL, is expanding to provide more service in China.

UPS said it plans to start domestic express delivery service in China over the next few months, Bloomberg said. By the end of 2005, UPS said it will have 3,500 employees and 1,400 vehicles deployed in China.