UPS has opened an international air hub in Shanghai Pudong International Airport in a bid to increase its China market share. The hub, involving a total investment of US$125m, is the US express delivery firm’s largest international transit facility in Asia and will connect China to its global air network with direct service to the US and Europe.

The new facility, covering 35,000 sq metres, will be able to sort 17,000 packages an hour by 2012.

People’s Daily reported that rivals DHL and FedEx are also building hubs in China. DHL will invest US$175m in a North Asia express transfer facility in Shanghai, due to be completed in the second half of 2010. FedEx will open its Asia-Pacific hub in Guangzhou in the first half of next year.