UPS 2013 Annual Report Download - page 31

19
Our aircraft are operated in a hub and spoke pattern in the U.S., with our principal air hub, known as Worldport, located
in Louisville, Kentucky. The Worldport facility consists of over 5.2 million square feet and the site includes approximately 596
acres. Between 2009 and 2010, we completed an expansion of our Worldport facility, which increased the sorting capacity to
approximately 416,000 packages per hour. The expansion, which cost over $1 billion, involved the addition of two aircraft
load / unload wings to the hub building, followed by the installation of high-speed conveyor and computer control systems.
We also have regional air hubs in Columbia, South Carolina; Dallas, Texas; Ontario, California; Philadelphia,
Pennsylvania; and Rockford, Illinois. These hubs house facilities for the sorting, transfer and delivery of packages. Our
European air hub is located in Cologne, Germany, and we maintain Asia-Pacific air hubs in Shanghai, China; Shenzhen, China;
and Hong Kong. Our regional air hub in Canada is located in Hamilton, Ontario, and our regional air hub for Latin America and
the Caribbean is in Miami, Florida.
In the first quarter of 2014, we will complete the expansion of our European air hub in Cologne. The expansion project
equips the existing facility with additional state-of-the-art technology and includes a major extension to the existing building.
This extension is partially dedicated to processing larger freight shipments. Together, these initiatives will significantly increase
the hub’s package sorting capacity from 112,000 to 190,000 packages per hour. The total cost of the expansion is approximately
$200 million.
Over the past several years, UPS has made a successful transition to become the first wholly-owned foreign express
carrier in China. In 2008, we opened the UPS International Air Hub at Pudong International Airport, which was built on a
parcel totaling 2.4 million square feet with a sorting capacity of 17,000 packages per hour. This hub links all of China via
Shanghai to UPS’s international network, with direct service to the Americas, Europe and Asia. It also connects points served in
China by UPS through a dedicated service provided by Yangtze River Express, a Chinese all-cargo airline.
In February 2010, we opened a new intra-Asia air hub at Shenzhen Bao'an International Airport in China. The Shenzhen
facility, which was built on a parcel of almost one million square feet and has a sorting capacity of 18,000 packages per hour,
serves as our primary transit hub in Asia.
Our primary information technology operations are consolidated in a 443,600 square foot owned facility, the Ramapo
Ridge facility, which is located on a 39-acre site in Mahwah, New Jersey. We also own a 175,000 square foot facility located on
a 25-acre site in Alpharetta, Georgia, which serves as a backup to the main information technology operations facility in New
Jersey. This facility provides production functions and backup capacity in the event that a power outage or other disaster
incapacitates the main data center. It also helps to meet our internal communication needs.
We believe that our facilities are adequate to support our current operations.
Fleet
Aircraft
The following table shows information about our aircraft fleet as of December 31, 2013:
Description
Owned and
Capital
Leases
Short-term
Leased or
Chartered
From
Others On
Order Under Option
Boeing 747-400F 11 — — —
Boeing 747-400BCF 2 — — —
Boeing 757-200F 75 — — —
Boeing 767-300ERF 59 — — —
Boeing MD-11F 38 — — —
Airbus A300-600F 52 — — —
Other — 388 — —
Total 237 388 — —
We maintain an inventory of spare engines and parts for each aircraft.