UPS (NYSE:UPS) officially opened its new 32,000 square metre package sorting and delivery facility in the south east of England. At $163 million, the new London Hub is one of UPS’s largest single infrastructure investments outside of the United States in the company’s history.
“Every single day, we see evidence of a more inter-connected world of commerce. And we are delighted that UPS continues building upon its relationship with Dubai-based DP World to explore new international opportunities,” commented Rami Suleiman, newly appointed UPS President of the Indian Subcontinent, Middle East and Africa region (ISMEA).
“We are leveraging our work with DP World, a global trade enabler, along with UPS’s smart global logistics network to improve trade flow processes that our customers rely upon to expand their businesses globally.”
UPS is also working with Expo 2020 Dubai as the official logistics partner to help connect Dubai to the world and the world to Dubai. The theme of the UK’s participation in Expo 2020 Dubai is “Global Britain – Innovating for a Shared Future.” The UK will build a pavilion and host a program of business and cultural events in Dubai.
“We congratulate UPS on this strategic development. By using DP World London Gateway Logistics Park and Port, UPS will have a fast ‘global conveyor-belt’ directly connected to their own worldwide network,” said Sultan Ahmed bin Sulayem, DP World’s Group Chairman and CEO.
“This development confirms that the market-centric location of DP World London Gateway, right on the doorstep of London and the South East and on the same site as the country’s fastest growing deep-sea port, can only add value to supply chains – through reductions in cost, time and carbon footprint.”
Located at the DP World London Gateway Logistics Park, the new building will act as a UK package processing hub and distribution centre for the local area as well as a gateway to UPS’s global logistics network, with capacity to process up to 28,000 packages per hour and room for further expansion.
“E-commerce growth, cross-border trade expansion, and unique customer needs are accelerating demand for UPS’s services,” said Lou Rivieccio, president, UPS Europe. “This strategic investment in capacity and cutting-edge technologies in the UK is helping advance UPS’s smart global logistics network of the future.”
More than 500 employees will operate out of the new operations hub that spans the space of approximately five football pitches. With over four miles of conveyor belts, the facility features advanced package scanning and sortation equipment that increase the flexibility to efficiently route packages to their final destinations. Business and residential customers will benefit from enhanced speed and accuracy as UPS meets their growing global shipping demands.
“This state-of-the-art facility enables us to further improve our services to companies of all sizes that are looking to grow their cross-border business,” said Mark Vale, president for UPS UK, Ireland and Nordics. “With strong growth in our export volume in the UK, which increased nearly 20% in 2017 and more than 15% in the first quarter of 2018, we are optimistic about the future. This key investment is tangible proof of UPS’s commitment to helping customers doing business in and with the UK.”
The new London Hub is part of a $2 billion infrastructure and network investment programme by UPS across Europe to add capacity and provide even faster services across the region. Recent investments as part of this programme include the announcement of a $155 million facility in Eindhoven, the Netherlands, the opening of an $80 million facility in Bielefeld, Germany, and the construction of a $100 million hub in Evry, France.
Attending the official opening ceremony, British Transport Secretary, Chris Grayling MP said: “The significant investment announced today by UPS is a strong vote of confidence in our country’s economic strength and our aspirations for the future. As the gateways for as much as 95% of our international trade, our ports – including the world-leading operations at London Gateway – are vital to our country’s long-term prosperity. That is why we are committed to enhancing their productivity and maximising their potential, as set out in our port connectivity study. This new London Hub, bringing employment and investment in the South East, will further enhance our position as an outward-facing and dynamic trading nation.”
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