Philippine's opens new UPS hub at former U.S. air base

CLARK ECONOMIC ZONE, PHILIPPINES - President Gloria Macapagal Arroyo on Thursday inaugurated the United Parcel Service's Asia-Pacific hub at the former U.S. Clark Air Base.

Atlanta-based UPS invested about $300 million for the hub, including aircraft and a $7 million 23,000 square foot facility, officials said.

``The UPS operations in Clark are expected to bring regionwide access to exports and imports and make it a vital center in East Asian transport services,'' Arroyo said after ringing a UPS bell three times during the inaugural ceremonies.

She said the UPS decision to locate its intra-Asia hub at Clark is a ``microcosm of the international business community's reaction to the Philippines,'' citing improved outlooks from international credit-rating agencies.

The UPS hub is the second in the country by a U.S. parcel company. In 1995, Federal Express opened a regional hub at the Subic Bay Freeport, a former U.S. naval base southwest of Clark.

There will be 10 initial flights connecting Clark to Singapore, Seoul, Beijing, Shanghai, Bombay, Taipei, Hong Kong, Osaka and Tokyo, officials said.

Ronald Wallace, president of UPS International, said the hub ``dramatically improves our connection to the nine major Asian markets with enhanced overnight delivery services including an industry-leading, early-morning delivery option.''

Arroyo said her government plans to revive plans to build a rail line linking Manila to Clark, about 50 miles to the north, with South Korean and European investors.

Clark and Subic were the last U.S. military bases in the Philippines. Clark was forced to close following the Mount Pinatubo eruption in June 1991, and the U.S. forces left Subic in November 1992 after the Philippine Senate refused to extend its lease. The government later converted them into industrial and tourist zones.