Published 02 February 2018
Supply chain management solutions provider UPS has unveiled plans to invest over $12bn to expand its smart logistics network, increase pension funding and enhance stockholder value.
The company intends to invest up to $7bn in the next three years to build and overhaul facilities, in addition to purchasing new aircraft and ground fleet vehicles.
UPS will also use the investment to advance its information technology platforms for better functioning of the network and business, as well as to provide new customer solutions.
The company has placed an order to purchase 14 Boeing 747-8 cargo jets and four new Boeing 767 aircraft to provide additional capacity, helping to meet growing demand from the customers for its air services.
In 2016, the company also ordered 14 Boeing 747-8 freighters. Slated to be delivered by the end of 2022, all 32 jets will add over nine million pounds of cargo capacity to the company.
The 747-8 freighter holds capacity to carry 46 shipping containers, of which 34 on its main deck and 12 in its lower compartments.
With a range of 4,200 nautical miles, the freighter can carry 307,600 pounds or approximately 30,000 packages
With a cargo capacity of 132,200 pounds, Boeing 767 freighter can carry 31 air containers, of which 24 on the main deck and seven in its lower compartments.
Recently, the company made a $5bn tax-qualified contribution to its three UPS-sponsored US pension plans, which represents around $13,000 per participant.
UPS chairman and chief executive officer David Abney said: “This $12 billion investment program is an outgrowth of the opportunity for tax savings created by the Tax and Jobs Act.
“We will increase network investments and accelerate pension funding to strengthen the company for the long term, so that we maximize the benefit to our global customers, employees and shareowners.”
Image: Boeing 747-400 Freighter owned by UPS Airlines. Photo: courtesy of Frank Kovalchek.
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