New UPS Hub to Connect Calgary to the World

Mississagua, February 22, 2010

$30 Million Airport Facility to Expedite International Shipments

UPS (NYSE:UPS) today announced the official opening of its new distribution center at the Calgary International Airport (YYC), a state-of-the-art hub to provide businesses with direct access to the U.S. and international markets.

The facility, built at a cost of $30 million, will be central to the continued growth of Alberta's economy, allowing local businesses to tap into global growth markets such as China, India and Mexico.

"Despite the recent recession, Calgary's economy still stands as a growth engine for Canada with many businesses in the area looking to take advantage of emerging markets overseas," said Mike Tierney, president of UPS Canada, who was joined by UPS International President Dan Brutto for the official opening.  

"The rise of middle classes in China and India offers great potential to businesses in the Calgary area," Tierney continued. "And this new facility will provide our customers with access to those markets in a more convenient and reliable fashion than ever before."

Economists predict China will become the biggest economy in the world by 2050, while the rise of the middle class in India serves as a boon to entrepreneurs in Canada looking to capitalize on consumer demand for western goods. In 2008, India's purchasing power parity stood at US $2.3 trillion, while China's stood at US $8 trillion.

The 150,000-square-foot distribution facility has been under construction since June of 2008 and will allow UPS to double its package processing capability. The hub houses 157 trucks for ground transportation to surrounding communities in addition to serving as a staging point for aircraft. 

The facility also will serve to boost the local economy by employing more than 400 Calgarians and contributing to the transportation sector - one of the few sectors to see growth during the 2009 recession.

The new hub will sort and distribute both air and ground packages and is a direct response to a surge in UPS business. The global logistics company's shipment volume from the Calgary area has increased 60 percent since 2003.

The UPS facility is part of the YYC Global Logistics Park, a highly efficient and multifunctional international trade and transportation hub that moves high volumes of goods to and from local, regional and international destinations. 

"The new UPS facility is a welcome addition to the YYC Global Logistics Park," said Stephan Poirier, vice president and chief commercial officer. "Over the last decade YYC has solidly established itself as a major transportation and logistics hub in North America, making it a strategic location where cargo and passenger airlines can develop a strong link with their customers in western Canada and around the globe."

Air cargo tonnage has more than doubled at YYC from 66,000 tonnes in 1999 to 134,000 tonnes in 2007. Today, YYC generates more than $6 billion of annual economic activity, accounting for approximately 10 per cent of Calgary's gross domestic product. More than 15,000 people work on airport land.