In a statement, UPS chief executive Mike Eskew said the hub, which is due to open in 2008, will ensure the company is well-positioned to support growth in Asia's regional trade.
Citing Airport Council International statistics, the statement said cargo volume at Pudong International Airport rose from 634,966 tons in 2002 to 2.17 mln tons in 2006, while in the first half of this year, cargo volume rose 16.3 pct from a year earlier to 1.13 mln tons.
"Export volume growth in China for our second quarter this year was robust at more that 25 pct and at more than 20 pct year-to-date for the region," Eskew said.
UPS is the first US airline to open an international air hub in China, the statement said.
The hub will support express handling, distribution, cargo and air operations.
UPS has invested around 600 mln usd in China over the past five years.
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