Logistics giant UPS has partnered with the Luzon International Premiere Airport (LIPAD) to create a hub in the Philippines at Clark Airport (CRK) in Pampanga. This strategic move signifies UPS’s commitment to broadening its operations and aims to bolster its array of integrated express, supply chain, and healthcare logistics services.
Wilfredo Ramos, president of UPS Asia Pacific, says: “Asia Pacific continues to be one of UPS’s fastest growing regions. UPS has continued to invest in our network to maximize speed and flexibility, build solutions addressing the shift of global trade lanes, and offer resilience for our customers.”
Logistics hub for global brands
UPS has been doing business in the Philippines for 25 years. The company hopes this investment will connect organizations to markets in Asia Pacific and beyond. The expansion will enhance transit time across the Asia Pacific and continue to deliver service reliability for our customers.
Josephine Gotianun Yap, LIPAD chairperson, says: “This partnership between UPS and LIPAD also represents a significant milestone in developing Clark as an ideal logistics hub for global brands aiming to establish or expand their international operations. LIPAD, which operates Clark International Airport, looks forward to welcoming UPS to its future location in Clark and supports its expansion in the Philippines,” Yap continued.
The construction of the new Clark hub is slated to commence in February 2025, with plans for it to become operational by late 2026.
Industry players in Philippines
UPS is not the only company to invest in its Philippines operations. In November, DHL Supply Chain announced it would expand in the country.
The $86 million expansion includes the ongoing construction of the 50,000-square-meter Sta. Rosa Logistics Center in Calamba, Laguna, which opens this year, and the construction of a 20,000-sqm facility in the Greater Manila Area in 2025.
Philippines freight and logistics market
Mordor Intelligence reports the Philippines freight and logistics market is estimated to grow at an annual compound growth rate of 7.08% in the next four years. Companies could look to a digital shift to spearhead growth.
“The digital shift has been led by e-commerce firms like Lazada, Zalora, and Shopee, who work with tech-driven logistics firms like Ninja Van and Lalamove to transport items so customers can track their orders in real-time. Switching to digital will increase order status transparency, reduce lead times, and speed up customs clearance processes by up to 80%, taking only 3-5 business days,” reads the report.
Cost, reliability, and speed priority
Last month, DHL released its 2024 E-tailers’ Almanac – which gives online merchants insight into what’s happening in the e-commerce industry.
DHL highlights there is an emphasis on greater speed and quality. “2023 was marked for online merchants as a year with cost, reliability, and speed as the top three priorities. However, a noticeable shift occurs where quality and speed are gaining prominence over cost. This shift can be attributed to online merchants looking to expand their businesses this year and their increased focus on time-definite delivery options,” DHL says.
About the author
Sharl is a qualified journalist. He has over 10 years’ experience in the media industry, including positions as an editor of a magazine and Business Editor of a daily newspaper. Sharl also has experience in logistics specifically operations, where he worked with global food aid organisations distributing food into Africa. Sharl enjoys writing business stories and human interest pieces.
