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UPS Plans Domestic Express Service in 23 Chinese Metro Areas

United Parcel Service will offer domestic express package service across most of China by September, the Atlanta company said yesterday.

The global package delivery company said the move reflects the dramatic business opportunities being created in the country.

UPS said the operation initially will link 23 major metropolitan areas with next-day service. The contract-only service already is available to selected customers in five major metro areas, with the balance to be implemented by September.

The new service will not have a material impact on financial performance in 2005, the UPS said.

About 80 percent of China's international trade is generated within the territory that UPS will serve, and these areas are expected to experience fast-growing domestic trade as well. The company said it plans to expand its domestic China express service in the future beyond the initial 23 areas.

UPS began taking control of its operations inside China under an agreement announced in December. The deal reached with its longtime China partner Sinotrans opened the way for operations in the 23 business centers to be transferred to UPS by this September.

Melissa Campanelli covers postal news, CRM and database marketing for DM News and DMNews.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters

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