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UPS to quadruple size of Hong Kong airport express facility

Company will have dual hub operation in South China

Eric Kulisch
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UPS operates a large number of Boeing 747-8 freighters (pictured) around the world. A new air terminal in Hong Kong will be able to handle the large aircraft. (Photo: UPS)

UPS said Monday it will develop a large express cargo hub at Hong Kong International Airport that will improve shipping service and connectivity in the South China and Asia-Pacific regions. 

The Hong Kong airport authority agreed to lease UPS a 215,000-square-foot parcel for the fully automated air hub, which will have better access to freighter aircraft carrying imports, exports and transshipment cargo.

UPS (NYSE: UPS) said the facility, which will be about four times larger than its current airport locations, is expected to be completed in 2028 and have an annual package throughput of close to 1 million tons. The project will allow the integrated parcel company to collapse two existing operations in into one on airport operation, creating significant operational efficiences.

Officials did not disclose how much the project will cost.


DHL Express last month finished the third phase of its Hong Kong hub, which has an annual capacity of 1.1 million tons. DHL has spent more than $400 million on the facility since its inception 19 years ago. 

The investments demonstrate how express integrators continue to plan for long-term growth in the Asia-Pacific region, especially to accommodate e-commerce demand, even though the current air cargo market is in a slump. 

Expanding Hong Kong into a global distribution point from a simple feeder node when it already has a hub at nearby Shenzhen International Airport underscores how large the South China region is for trade and parcel shipping.

“Hong Kong continues to be an engine of growth and a critical part of UPS’s global smart logistics network,” said Daryl Tay, president of UPS North Asia District, in a news release. “This new hub, along with our existing operations at Shenzhen Bao An Airport, demonstrate our continued commitment to Asia.”


The automated facility will be able to sort 15,000 packages per hour, about five times more than the current building, with the aid of six-sided camera barcode scanners and computerized tomography X-ray technology. 

UPS said it will optimize its existing operations in Hong Kong by streamlining some smaller and separately located facilities

Click here for more FreightWaves/American Shipper stories by Eric Kulisch.

DHL Express upsizes Hong Kong facility

Eric Kulisch

Eric is the Supply Chain and Air Cargo Editor at FreightWaves. An award-winning business journalist with extensive experience covering the logistics sector, Eric spent nearly two years as the Washington, D.C., correspondent for Automotive News, where he focused on regulatory and policy issues surrounding autonomous vehicles, mobility, fuel economy and safety. He has won two regional Gold Medals and a Silver Medal from the American Society of Business Publication Editors for government and trade coverage, and news analysis. He was voted best for feature writing and commentary in the Trade/Newsletter category by the D.C. Chapter of the Society of Professional Journalists. He won Environmental Journalist of the Year from the Seahorse Freight Association in 2014 and was the group's 2013 Supply Chain Journalist of the Year. In December 2022, Eric was voted runner up for Air Cargo Journalist by the Seahorse Freight Association. As associate editor at American Shipper Magazine for more than a decade, he wrote about trade, freight transportation and supply chains. He has appeared on Marketplace, ABC News and National Public Radio to talk about logistics issues in the news. Eric is based in Vancouver, Washington. He can be reached for comments and tips at ekulisch@freightwaves.com