For UPS Supply Chain Solutions, that growth spurt is taking place in 23 Chinese cities. UPS SCS alone operates more than 1,000 facilities in more than 120 countries, with about 35 million sq. ft. (3.3 million sq. m.) of distribution space. But China stands out for this firm as it does for all the major package and logistics multinationals. In fact, UPS already operated 40 logistics facilities there.

	Kurt Kuehn, UPS senior vice president, worldwide sales and marketing, is just one of many reminding U.S. companies of the inherent opportunity represented by the growing Chinese consumer market.

      Peter Ell, manager, logistics modeling, for UPS SCS Consulting Services, says he just ran one of many logistics modeling scenarios for a healthcare company looking at finished goods distribution in Asia. This particular client had a number of different business units, and was trying to do a reconciliation of several different units to achieve economies of scale. Ell says he's usually working on approximately six such studies at any one time, for both internal and external clients.
      With regard to the company's 23-city facility roll-out in China, Tom Hundelt, international real estate director for UPS SCS, says the objective is to work closely with the package distribution side of the house at UPS. In addition, he too is looking at economies of scale related to multi-client facilities and to specific locations' real estate and population potential.
      Asked if China's Special Economic Zones were special incentives, Hundelt, an 18-year UPS veteran who joined the supply chain division in 1997, says, "Sure. Our longest relationship is in the Futian/Shenzhen area." There are more such zones to the east and north, as UPS follows development patterns up the coast.
      Hundelt points out that the Chinese government has put some restrictions on the amount of land available and on the speed at which it can be acquired, and moving forward with projects can depend on the nature of the original lease or acquisition agreement. Such conditions make the special trade zones even more favorable, especially for Western import-export businesses.
      The company's longstanding good rapport with the national government in China has enabled smooth takeoff, including the literally new takeoffs by flights into and out of Guangzhou. And the incursion of more western developers has helped smooth facility launches too.