United Parcel Service on Wednesday unveiled its largest and most advanced logistics center in Asia Pacific, a nearly $100 million investment that demonstrates the company’s continued investment in critical infrastructure even as it downsizes its shipping network and reduces overall capital expenditures.
The 872,000-square foot automated distribution center in Taiwan more than doubles UPS’s warehouse footprint in Taiwan. It is located three miles from Taoyuan International Airport, where shipments can reach global markets via 22 freighter flights UPS operates in and out of Taipei each week.
UPS said the Taoyuan International Logistics Center will support high-value sectors such as semiconductors and medical technology. UPS has increasingly placed a strategic focus on B2B logistics sectors with high margins, including healthcare and technology, and international package service. Applied Materials, a major semiconductor and display equipment company, uses the TILC as its Asia continental distribution center.
The building features a fleet of autonomous mobile robots, which are programmed to carry out tasks such as pick and pack, and inventory management. The robots are leading to significant productivity gains, according to UPS. For example, once a customer order arrives at the TILC, it can be processed and packed onto shelves roughly 40% faster than current processing speeds. Customers can also double the number of products they can stack in the equivalent space on regular shelving. Meanwhile, errors made during the order picking process are reduced to near zero.
The Taiwan logistics center is the latest in a series of investments by UPS in its Asia Pacific network to facilitate efficient cross-border trade. In October, UPS opened a 20,000 square foot package center in Penang, Malaysia, and increased the size of its existing hub at Penang Airport to boost parcel processing capacity.
UPS has reduced spending for capital expenditures from $3.9 billion in 2024 to a projected $3 billion in 2026.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at [email protected].
RELATED STORIES:
UPS identifies 22 package facilities for closure
UPS navigates Amazon draw down in hard pivot to premium services
The post New UPS distribution center in Taiwan doubles capacity, productivity appeared first on FreightWaves.
LATEST POSTS
- 1
Barry Manilow reveals lung cancer diagnosis and plans to undergo surgery: 'It's pure luck' it was 'found so early' - 2Former hostage Eitan Mor on Hamas: ‘They will not give up until the last Israeli is gone'
- 3Building a Maintainable Closet: Individual Excursions in Moral Style
- 4Doctors looking into hormone therapy as a way to ward off dementia in women
- 5The most effective method to Perceive the Early Side effects of Cellular breakdown in the lungs
- 4 Electric Vehicle Brands: Execution, Unwavering quality, and Development
- See the famous winged horse Pegasus fly in the autumn night sky
- Don't miss the waxing moon swing by the Beehive star cluster March 27
- Popular Japanese Hotel Chain Now Lets You Show Up With Just Your Passport
- Find Serenity: 10 Stunning Setting up camp Areas
- Dozens of hidden star streams found in the outskirts of our Milky Way galaxy
- The Development of Shipping: Controlling Towards a More Associated Future
- NASA’s Artemis II mission will take an astronaut crew around the Moon – a space policy expert describes the long road to launch
- the Kinds of Thailand: Decision in favor of Your Number one Thai Dish!
