ups.gifUPS and Shanghai Airport Authority have conducted a formal groundbreaking ceremony for the UPS International Air Hub at Pudong International Airport.

The new hub will link all of China via Shanghai to UPS' international network with direct service to the Americas, Europe and Asia. It also will connect points served in China by UPS through a dedicated service provided by Yangtze River Express, a Chinese all-cargo airline.

The new facility is the result of the 2004 US-China Air Services Agreement. While the agreement is seen as primarily designed to benefit passenger airlines — it will double the number of daily passenger flights that US carriers can operate between the US and China over the next five years — it is also designed to erase restrictions on air cargo flights between the two countries.

Over the past five years, UPS has invested about $600m in China, including a successful transition to become the first wholly-owned foreign express carrier in the country.

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