UPS announced plans to spend $125 million to set up a new transfer center for air cargo in Shanghai. The 1 million-square-foot center is expected to start operation in late 2008, serving international flights. The company now has 100 flights at Pudong International Airport each week, 24 of which are provided by Yangtze River Express Airlines Co. through a partnership agreement.

UPS also plans to break ground before the end of the year on a $180 million Pan-Asia air transfer center in Shenzhen, South China.