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Cargo boost (United Parcel Service of America Inc.) (Alaska Business Briefs)

Cargo Boost Cargo Boost. The U.S. Department of Transportation awarded United Parcel Service Inc. of Greenwhich, Conn., the right to fly a new air-cargo route between Anchorage and Tokyo. The expanded operations, which were expected to begin with six flights weekly in October, could bring additional local expenditures of $10 million to $12 million. UPS officials expect the new route to create at least 100 jobs in Anchorage.

UPS joins Federal Express and Northwest Airlines as the only air carriers allowed to fly freight between the United States and the Asian market. All three companies land for refueling at Anchorage International Airport. Competing with United Parcel Service for the Tokyo route was Emery Worldwide AFC Co., which proposed using Fairbanks International Airport as its hub.

The Japanese route is expected to generate revenues of $90 million for UPS in its first year. The carrier uses Anchorage as a consolidation point for cargo transiting through and destined for Alaska. Its shipping from the state has been growing at about 20 percent a year.

UPS recently constructed a 30,000 square-foot cargo building at the Anchorage airport in anticipation of landing the new route. Further expansion in Alaska might include a 140,000 square-foot building within the next five years.
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Publication:Alaska Business Monthly
Date:Nov 1, 1990
Words:209
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