UPS Opens Hub in Calgary

UPS Opens Hub in Calgary

UPS on Monday opened a distribution center at the Calgary International Airport in Calgary, Alberta. The state-of-the-art hub is expected to provide direct access to the United States and international markets such as China, India and Mexico, the company said.

“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.

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

UPS, the world’s largest package delivery company, is counting on economists’ predictions that China will become the biggest economy in the world by 2050 and that a rising middle class in India will serve 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 $2.3 trillion, while China’s stood at $8 trillion.

Construction of the 150,000-square-foot facility began in June 2008. The $30 million distribution center 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.

Contact Thomas L. Gallagher at tgallagher@joc.com.