Tuesday, May 5, 2009

UPS assigns RP market to Aboitiz Transport System

UNITED Parcel Service (UPS), the world’s largest package-delivery company, has assigned its Philippine market to publicly listed Aboitiz Transport System Corp. (ATSC)

Stephen Paradies, chief financial officer of Aboitiz Equity Ventures (AEV), said the American firm also has allowed ATSC to use its worldwide network for express delivery of goods, or those cargoes that will be shipped through air.

AEV owns about 77.1 percent of ATSC. “We were recently appointed by UPS as the agent in the Philippines to handle all courier parcel delivery for UPS into the Philippines and we can use their network for parcel, courier, going outside the Philippines,” Paradies said. It is not clear if the discussions between the two companies involve the entire assets that will be left by UPS in Clark Field in Pampanga when it transfer its intraregional  hub to Shenzen, China, by next year.

UPS said it will still maintain its facilities in Clark, which can sort some 7,500 packages per day.

In an earlier interview, Maurice Gahoc, country manager of UPS Philippines, said UPS is repositioning its Clark operations in a former US military air base camp in Pampanga to target more of the country’s importers and exporters.

“Our Clark operations will handle cargoes to and from the Philippines. But not all cargoes that we handle now will go to our Chinese hub. Some cargoes will still be handled in Clark,” Gahoc said, but declined which type of cargoes.

Aboitiz may use its brand name 2Go for its UPS business for express delivery, or those parcels, documents and other cargoes that should be in its destination between one day to six days, as the company already has formed a joint-venture entity with another firm for its sea-freight cargo movement and forwarding.

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