UPS hits a century

zoom

Since its inception 100 years ago, UPS has grown into one of the biggest airfreight operators in the world, shifting 15 million packages on a daily basis. John Tansey, general manager of UPS in the United Arab Emirates, reflects on the company's transformation into a logistics powerhouse.

UPS is celebrating its 100th anniversary this year. How did the company initially develop its presence within the United States?

If we look back at the history of UPS, the company was established in 1907 by a couple of teenagers, who started operations from a Seattle basement with a US$100 loan. Although the United States was a competitive market, the founders - Jim Casey and Clause Ryan - managed to prosper by remaining focused on providing the best service at the lowest possible price. In 1919, the company made its first expansion beyond Seattle to Oakland in California, where the name United Parcel Service made its debut. This expansion continued over the decades and by 1975, UPS became the first package delivery company to serve every address in the 48 states of continental United States.

The company has since evolved into a major international player. When did it enter other regions, such as the Middle East?

UPS went international in 1975, when it offered services within the Canadian city of Toronto. However, it was actually during the 1980s that the company entered the international shipping market in earnest, establishing a presence in a growing number of countries in Europe, the Middle East, Africa and the Pacific Rim.

Is the Middle East generally considered an important market for UPS?

The Middle East has become a chief destination to serve the growing trade route between Europe, Asia and the rest of the world. UPS sees great potential for business here and we have established operations across the region, providing customers with access to global markets.

Can you explain how UPS has developed its Middle Eastern air cargo operations?

UPS first entered the Middle East in 1987 when it established import operations in Bahrain. It has since developed a comprehensive service portfolio, combining local expertise in the Middle East market with UPS's international strength and high quality standards. In 1996, UPS began services in the UAE through a joint venture with the Gulf Agency Company (GAC). Including the Dubai airport hub, we have eight access points in the region, 190 employees and 82 delivery fleets, which help serve both the local and international market.

How does UPS differentiate its operations in this region compared to competitors such as FedEx, DHL and TNT?

We also offer a comprehensive portfollio of services, including third party logistics and the transportation of anything from small packages to heavy freight, which can be moved as airfreight, sea freight or land freight. I actually think our international, fully integrated airfreight operations are unmatched. We are also the industry's only true integrator, with specific solutions that address the diverse business needs of customers in the region, whatever their size. This is further supported by our cutting-edge technological infrastructure.

How do you view the current conditions of the Middle East airfreight industry and where does it appear to be heading?

As the region is predominantly an import market where a large amount of perishables, machinery, tools and textiles come from neighbouring countries and across continents, the people working in the airfreight sector need to have the agility and flexibility to address that dynamic. The Middle East is expanding and becoming more vertical in nature, with dedicated ‘zones' and more focus on industries like healthcare, manufacturing and retail. These are the key areas that will provide further impetus for the growth of the air cargo industry and UPS is gearing its resources to meet that anticipated demand. Over the last decade, UPS has invested billions of dollars in technology to make doing business globally just as easy as it is domestically.

In light of the region's economic situation, what potential growth is there for the courier and express sector?

Alongside the strong growth of the economy, the UAE has an ability to service the rest of the region as a strategic hub. The investment and growth in industry verticals such as real estate, financial services and logistics have all contributed to the impressive growth of the courier and express services. This looks set to continue and with an increase of investment in infrastructure, greater ease of access in and out of the country will come around, bringing further benefits to the Middle East and the industry as a whole.

Print | Email | Discuss this article |

USER COMMENTS (0 COMMENTS)

POST A COMMENT

CLICK HERE TO POST A COMMENT

Add your Comment All posts are sent to the administrator for review and are published only after approval. ArabianBusiness.com reserves the right to remove any comment at any time for any reason. Please keep your responses appropriate and on topic.
Name *
Remember me on this computer
Email *	(Your email address will not be published)
City
Country
Subject *
Comment *
Notify me of further comments
Security Code *
Please click post only once - your comment will not be published immediately.