UPS to invest $500M for hub in Clark Field

CLARK FIELD, Pampanga – United Parcels Services (UPS), the world’s largest air cargo firm, will invest $500 million for the establishment and operation of its Asian hub inside the aviation complex here.

Clark Development Corp. (CDC) acting president Victor Jose Luciano said the decision of UPS to use the Diosdado Macapagal International Airport (DMIA) as its Asian hub soon will open new foreign investments anchored on the use of the airport.

In a meeting with CDC locators and investors recently, Luciano said he was informed earlier by UPS officials from Singapore that they decided to make Clark the main Asian hub for their worldwide operations because of Clark’s huge potential to handle international flights at any given time.

Clark was originally eyed by UPS officials as a hub for their intra-Asia operations. The Atlanta-based courier giant is expected to start its operations in April next year with an initial five international flights a night.

Earlier, UPS officials said the company will stay in Clark for a long time.

UPS managing director Matthew Ong said that "when we decide to invest in something, we stay with it for long time. Such a long-term view is necessary when you are working fixed air routes and with investments in airports and large equipment like cargo planes."

UPS chairman James Kelly said "we are impressed with the vision and progress of Clark (as a world-class investment center in the Philippines)."

Luciano said the decision of UPS to make Clark its main hub in Asia is also due to the full support extended by President Arroyo to CDC president Emmanuel Y. Angeles’ vision to turn the former devastated US facility into an "aerotropolis" and future premier gateway in the country.

Earlier, Ron Wallace, UPS International president, said "trade within Asia continues to grow and UPS believes the establishment of an intra-Asia hub at Clark zone will better serve our customers in the region.

Wallace cited two major reasons why the Philippines was chosen as the site for the hub, namely the country’s strategic location and the acceleration of the government’s "open skies" policy.

"The Philippines’ central position in the region makes it possible for cargo aircraft to reach all major Asian cities in less than four hours," he said.