Subscribe to our free, weekly email newsletter!


UPS expands capacity in three North America-based locations

By Jeff Berman, Group News Editor
April 14, 2014

UPS said last week it has made significant facility enhancements in three North American markets, which it said was spurred on by strong demand in the retail, manufacturing, and healthcare sectors.

The facilities UPS is expanding are in Calgary, Alberta, Hebron, Ky., and Mira Loma, Calif. UPS officials said that investments into these facilities will add roughly 478,000 square-feet to the UPS global supply chain solutions network, which is made up of 528 facilities and about 31 million square-feet. These facilities provide various services for shippers, including: warehousing and fulfillment, inventory, transportation and returns management, custom kitting and packaging, and store-ready displays.

UPS Vice President of North American Distribution Stephen Hydrick told LM that its customers in the retail, manufacturing, and healthcare sectors were seeking flexible warehousing and distribution space in strategic locations for their businesses.

“Our customers are seeking the flexibility to scale their businesses up and down as the market requires,” he said. “The occasional spikes in demand related to new product launches, seasonality and less predictable events has driven demand for contracted space for these industries in recent years.”

And he added that the main benefit of these expansions for shippers is location in that these facilities more customers with access to strategic warehousing/fulfillment locations.

When asked how long these respective expansions had been planned, Hydrick said that UPS opened its first building in Hebron in 1997 and has been expanding ever since. Mira Loma came later and the single client facility in Calgary was added in 4Q13.

“We’re really not targeting an end date for the build outs,” he said. “For example, we finished our addition to Hebron in 3Q13 before expanding again in Q4. We’ll expand our campuses as needed to ensure we’re keeping pace with our customers’ growth.”

Hydrick also shared some shipper benefits for each location UPS is expanding:
Mira Loma, Calif.: This location is one hour from the two largest seaports in the U.S., five minutes from the LA/Ontario Airport and UPS regional package/freight air hub, within eight miles of four major freeways, and only fifteen minutes from transcontinental rail connections. Additionally, this location provides shippers with access to Southern California’s growing population base for fulfillment and employment;
Hebron, Ky.: This location offers customers access to 62 percent of the U.S. population within two days via UPS Ground service and 64% of the U.S. population within two days via UPS Freight. It is within 600 miles of 30 major metro markets, five miles of the Cincinnati airport, falls within a region served by three major railroad systems and is intersected by three interstate highways, including I-75 - one of the busiest trucking routes in North America; and
Calgary, Alberta: This location specifically meets the need of customers in the healthcare space, offering a 2-8 degrees Celsius cooler (160 sq. ft.) The healthcare-specific capabilities will enable access into the area for healthcare companies looking to expand their business here.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Seasonally-adjusted (SA) for-hire truck tonnage in November was up 3.5 percent compared to October, which was up 0.5 percent over September at 136.8 (2000=100), marking the highest SA on record.

UPS said that through this acquisition it will augment its healthcare expertise and network in Europe, specifically in the fast growing healthcare markets in Central and Eastern Europe.

Carloads were up 12.1 percent at 312,271, and intermodal at 280,337 containers and trailers saw a 4.5 percent annual gain.

Total November POLB volumes were up 2.1 percent year-over-year at 581,514 TEU, and POLA volumes in November decreased 3 percent compared to November 2013 at 663,346 TEU.

When railroads are doing business with a larger than large customer like UPS, it stands to reason, it can often be the best, and worst, of both worlds, depending on how things are going. That was one of the main takeaways from a presentation by UPS Vice President of Corporate Transportation Services Ken Buenker at this year’s RailTrends conference in New York.

Article Topics

News · UPS · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2013 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA