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UPS opened its new hub at Clark International Airport in Pampanga, its largest investment in the Philippines at more than $80 million
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The 30,000-square-meter hub is 15 times bigger than the old one, raising average daily volume to 46,000 packages from 5,000
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New direct flights and up to two days faster delivery give Philippine businesses, especially SMEs, wider and quicker access to over 1,100 trade lanes
United Parcel Service (UPS) has officially opened its new hub at Clark International Airport (CRK) in Pampanga, boosting its operating capacity and improving service on more than 1,100 trade lanes worldwide.
The investment of more than $80 million is UPS’ largest ever in the Philippines. The facility covers 30,000 square meters (323,000 square feet), 15 times larger than the hub it replaces.
Capacity jumps more than ninefold
The new hub raises UPS’ average daily processing volume to 46,000 packages from 5,000 previously. Maximum processing capacity rises to 15,000 packages per hour from 1,250.
It also houses UPS Philippines’ first automated small package sorting system, which uses smart technology to process up to 9,000 small packages (under three kilograms) per hour.
Specialized handling areas serve healthcare, high-tech and manufacturing customers with time-sensitive and temperature-sensitive shipments, allowing UPS to take on more of these premium shipments.
Ramp operations run on a fleet of electric ground support equipment, including cargo tractors, belt and cargo loaders, ground power units and forklifts.
UPS now operates 170 flight segments into and out of Clark every week, connecting businesses across Asia Pacific, India, Europe and the United States in as little as one business day. It flies Boeing 747-8 and 767 aircraft at Clark, and Boeing 737s through its broader network and partners.
The new hub has also created nearly 600 jobs, many filled by residents of Pampanga and nearby areas.
UPS executives on the expansion
“This is a very special moment for our customers and our company,” UPS Philippines managing director Russell Reed said in a statement. He added that improving services across more than 1,100 trade lanes “is incredibly exciting, especially at a time when businesses are facing a unique set of challenges.”
“When we opened our first Clark hub in 2002, we always had growth in mind – for our customers, our people and the local community. We’re proud to have called Clark home for nearly a quarter of a century and we’re delighted that the new UPS Clark hub will continue to provide people and businesses, both in the Philippines and across Asia, with international trade growth opportunities for decades more to come,” Reed said.
UPS Asia Pacific president Bernard Jiang said: “When we first announced plans to build our new Clark hub in 2024, it was the beginning of a sustained, multi-year investment strategy to strengthen our Asia Pacific network and give our customers faster connections to support growing trade flows across the region.”
“Asia Pacific has been the heartbeat of global trade for years. There are still plenty of growth opportunities for the region’s businesses and a lot of untapped potential. Clark is the latest in a series of recent major investments UPS has made in its Asia Pacific network and there’s more to come as we continue to speed up connectivity, unlock trade growth opportunities, improve service reliability and strengthen supply chains for our customers,” Jiang added.
At a media briefing ahead of the opening, UPS North Asia and Asia Pacific Operations & Strategy president Daryl Tay said the Clark investment is part of the company’s regional network upgrades to strengthen customers’ supply chains and keep its network agile.
In March this year, UPS opened its largest logistics center in Asia Pacific, in Taiwan, and broke ground on a new hub at Hong Kong International Airport. In April, it completed a major expansion of its hub at Incheon Airport.
New direct routes for Philippine businesses
The expanded trade lane coverage benefits not only UPS’ global customers but also Philippine businesses, particularly small and medium enterprises (SMEs).
UPS Philippines head of air operations and Clark hub general manager Albert Sapaen, Jr. told PortCalls on the sidelines of the same briefing that the hub opens new air routes and opportunities that were not available before.
These include a new direct flight from Cologne, Germany to Clark and a direct flight from Clark to Shanghai. Other new direct destinations include Osaka and Narita in Japan, Taipei in Taiwan, and Bangalore in India.
Sapaen said small businesses can now plug into UPS’ expanded network and services to grow their presence worldwide.
The new hub also brings these service improvements:
- Up to two days faster delivery to and from eastern China and other major Asia Pacific markets
- Up to two days faster service between several Southeast Asian markets and India
- Better service to and from the Philippines on trade lanes worldwide
- Faster transit times, later pickup cutoff times and earlier delivery times in cities and countries across the region
Cold chain capability for healthcare cargo
The Leadership in Energy and Environmental Design (LEED)-certified building has three refrigeration and freezer units (ranging from -20 to -25°C), dedicated re-icing capability, and UPS Premier radio frequency identification (RFID) technology for priority handling and better visibility of critical and temperature-sensitive healthcare shipments.
Sapaen said these capabilities allow the Clark hub to handle more premium shipments such as medicines, vaccines, biological samples, life sciences products and clinical trial materials.
He also welcomed this year’s announcement of planned pharmaceutical economic zones in Pampanga and Tarlac, noting that the UPS group has been investing in the healthcare sector.
What it means for logistics stakeholders
For exporters, importers and freight forwarders, the Clark hub means more capacity, later cutoffs and faster transit on key Asia Pacific, India and Europe lanes. New direct links to Cologne, Shanghai, Osaka, Narita, Taipei and Bangalore cut the need for transshipment through other regional hubs. Cold chain features and RFID tracking also make Clark a stronger option for pharmaceutical and healthcare cargo, especially as pharma economic zones take shape in Central Luzon.
25 years in Clark
The opening comes as UPS prepares to mark 25 years of operations in Clark in 2027, having opened its first hub at the airport in 2002. UPS said it has built strong ties with the Clark community through volunteer efforts such as tree planting, coastal cleanups, community meal programs and the Brigada Eskwela program.
Aside from Clark, UPS opened a new operations facility in Carmona, Cavite last year. It also has a facility in Cebu and three facilities in Parañaque. – Roumina Pablo
READ: UPS’ upcoming Clark hub seen boosting PH logistics, cargo movement
