United Parcel Service on Wednesday unveiled its largest and most advanced logistics center in Asia Pacific, a nearly $100 million investment that demonstrates the company’s continued investment in critical infrastructure even as it downsizes its shipping network and reduces overall capital expenditures.
The 872,000-square foot automated distribution center in Taiwan more than doubles UPS’s warehouse footprint in Taiwan. It is located three miles from Taoyuan International Airport, where shipments can reach global markets via 22 freighter flights UPS operates in and out of Taipei each week.
UPS said the Taoyuan International Logistics Center will support high-value sectors such as semiconductors and medical technology. UPS has increasingly placed a strategic focus on B2B logistics sectors with high margins, including healthcare and technology, and international package service. Applied Materials, a major semiconductor and display equipment company, uses the TILC as its Asia continental distribution center.
The building features a fleet of autonomous mobile robots, which are programmed to carry out tasks such as pick and pack, and inventory management. The robots are leading to significant productivity gains, according to UPS. For example, once a customer order arrives at the TILC, it can be processed and packed onto shelves roughly 40% faster than current processing speeds. Customers can also double the number of products they can stack in the equivalent space on regular shelving. Meanwhile, errors made during the order picking process are reduced to near zero.
The Taiwan logistics center is the latest in a series of investments by UPS in its Asia Pacific network to facilitate efficient cross-border trade. In October, UPS opened a 20,000 square foot package center in Penang, Malaysia, and increased the size of its existing hub at Penang Airport to boost parcel processing capacity.
UPS has reduced spending for capital expenditures from $3.9 billion in 2024 to a projected $3 billion in 2026.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at [email protected].
RELATED STORIES:
UPS identifies 22 package facilities for closure
UPS navigates Amazon draw down in hard pivot to premium services
The post New UPS distribution center in Taiwan doubles capacity, productivity appeared first on FreightWaves.
latest_posts
- 1
Research institutions tout the value of scholarship that crosses disciplines – but academia pushes interdisciplinary researchers out - 2Old age isn’t a modern phenomenon – many people lived long enough to grow old in the olden days, too
- 3From a new flagship space telescope to lunar exploration, global cooperation – and competition – will make 2026 an exciting year for space
- 4Sarkozy says he owes France 'the truth' as he challenges conviction over alleged Libya funding
- 5Figure out How to Upgrade Your Gold Speculation Portfolio: Vital Bits of knowledge and Strategies
- NASA’s Artemis II mission will take an astronaut crew around the Moon – a space policy expert describes the long road to launch
- Two Endangered Bengal Tiger Cubs Die Days Apart at Zoo After Contracting Virus
- South Korea to End Bear Bile Farming and Find New Homes for the 200 Bears Stuck in the Industry
- Oil, energy and food: Which countries in Europe are most exposed to higher food prices?
- Enormous Credit And All that You Really want To Be aware
- Kissing is an ‘evolutionary conundrum.’ Scientists just mapped its unexpected origins
- The breakout star of NASA's Artemis 2 moon mission isn't an astronaut — it's the space toilet
- Iran-backed Iraqi militias attack Kurdistan over 450 times since beginning of war
- Figure out How to Protect Your Gold Venture from Unpredictability
