UNITED Parcel Service (UPS) has appointed Aboitiz Transport System (ATS) as its local agent, Aboitiz Equity Ventures (AEV) senior vice president and chief financial officer Stephen Paradies said in a teleconference held late last week.
AEV is the mother firm of ATS.
UPS is winding down its Asia-Pacific hub operations in Clarkfield, Pampanga to relocate to Asia’s economic powerhouse China. UPS will, however, maintain backroom operations in the Philippines.
The UPS Shenzhen hub will open in 2010.
As local agent, ATS will handle the courier and parcel delivery services for UPS, Paradies said.
The deal will further boost ATS’ logistics business, which has been steadily growing in the last few years, he added.
ATS has been beefing up its freight business in the face of a continuing slump in the passage sector due to competition from budget airlines.
Last year, through its logistics arm 2GO, ATS acquired ScanAsia Overseas, Inc, an importer and distributor of fine food products and beverages in the Philippine market, representing over 16 principals and carrying some 36 international brands.
ATS is also continually converting unused passage spaces in its SuperFerry fleet to increase freight capacity.
The company reported consolidated revenues of P10.3 billion last year, a 25% increase from P8.2 billion in 2007, mainly due to contributions from the freight business which raked in P5.4 billion.
