UPS officially announces construction of new distribution centre at Calgary International Airport

MISSISSAUGA, Ont. — The world’s largest package delivery company is establishing a new distribution centre at the Calgary International Airport to meet the rising demands of Alberta’s economy.

UPS Canada announced today that it is building a 150,000-sq.-ft. distribution facility on Aero Drive NE.  The $26-million facility will offer state-of-the-art technology to facilitate import, export and Canadian domestic shipments while allowing UPS to double its package processing capability over time, officials said in a statement.

“Calgary is clearly Alberta’s premier international gateway for cargo today and in the future and this new facility will ensure current and new customers continue to receive expedient, reliable and convenient service,” said Mike Tierney, president of UPS Canada.

 
The new building is the latest addition to Calgary’s expanding transportation and logistics industry, which has grown 77% and doubled the size of its workforce to 40,700 in the past 10 years. The new UPS distribution centre will employ 415 of the air transport sector’s 6,500 employees.

Since 2003, UPS has seen a 60% increase in the volume of orders from the greater Calgary area, particularly from the retail, technology and financial sectors, the company said. The surge in demand prompted the company to invest in a new facility that will ease the flow of parcels through the distribution process and ensure it maintains an optimal level of customer service.

“Calgary’s economy is extremely competitive and only by providing superior service to our customers can we continue to grow with the rising demands of the city’s businesses,” said Tierney. “The new facility will allow us to reduce the time customer shipments spend in transit, which ultimately means our customers continue to receive the level of speed and service for which UPS has become world renowned.”

The new UPS facility will have airside access in the Airport’s YYC Global Logistics Parks, multifunctional international trade and transportation hubs that move high volumes of goods to and from local, regional and international destinations. The Parks are part of The Calgary Airport Authority’s mandate to foster economic development in the city.

“Calgary is western Canada’s largest transportation and logistics centre and one of the major reasons is the ‘air cargo bridge’ that we’ve created,” said Stephan Poirier, vice-president and chief commercial officer for The Calgary Airport Authority. “It provides companies such as UPS access to 24/7 cargo services and an impressive and growing network of integrated transportation systems, services and companies, all on Airport land.”

YYC Global Logistics Parks have more than doubled air cargo movement at the Calgary International Airport to 134,000 tonnes in 2007, from 66,000 tonnes in 1999, and have helped turn the Airport into one of the city’s major economic engines. Today, the Airport generates more than $5 billion of annual economic activity, approximately 10% of Calgary’s gross domestic product, and more than 15,000 people work on Airport land.

UPS’s new airport distribution centre will house 157 trucks and will service Calgary as well as surrounding communities, including Airdrie, Okotoks, High River, Bragg Creek, Cochrane, Strathmore, Canmore and Banff. UPS will continue to operate its three separate distribution centres in the city until the new facility becomes operational in October.