September 28, 2010 (Chinavesstor) United Parcel Service (NYSE:UPS), one of the world's largest package shipping firms, wants to set up a domestic postal service in China and may submit an application to do so to China's postal regulator as soon as this week, according to a report in the Financial Times. If the State Post Bureau approves the company's plans, UPS (NYSE:UPS) will introduce a next-day delivery service and second and third-day delivery products in China.
Atlanta-based UPS (NYSE:UPS) said the Chinese market could be as large as 5 million packages on a daily basis. In 2009 UPS delivered about 1.2 million packages a day in its international-domestic segment equal to $2.1 billion in revenue, the FT reported.
UPS (NYSE:UPS) said last week its intra-Asian business is expected to grow at a high double-digit percentage rate over the next ten years. UPS said customers such as Amazon.com (Nasdaq:AMZN) have encouraged the shipping company to expand in China so that they have a safer, more familiar way of sending packages in China, the FT reported.
The Chinese shipping market may be worth up to $9 billion a year, according to one industry research firm. UPS and rival FedEx (NYSE:FDX) are also pushing to expand their logistics businesses in Asian markets, including China.