UPS to Take Over China Network

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United Parcel Service Inc., Atlanta, announced yesterday that it will pay $100 million to take over most of the international express delivery operations of its Chinese partner, Sinotrans.


The agreement, signed Dec. 1, lets UPS take direct control of operations in 200 cities across China by the end of 2005. Those cities account for more than 80 percent of China's gross domestic product.


UPS expects to increase the number of branded trucks and uniformed drivers in China. The company also plans to enhance its package-tracking network, expand shipping software options and introduce a toll-free customer service hotline.


This is the latest in a string of announcements regarding the expansion of UPS operations in China. Last month, UPS began operating the first of 12 new flights to China with MD-11 service to Shanghai. The new flights will triple the company's previous service from six to 18 flights weekly. UPS next year plans to start the first non-stop service in the industry between the United States and Guangzhou and establish a Shanghai air hub in 2007.


UPS export volume in China grew 129 percent in the third quarter compared with the year-ago period, and by more than 90 percent year-to-date.


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