UPS joins Turks for new cargo venture from Dubai

UPS will have a majority stake in the new joint venture which has involved the acquisition of the small package operations of Unsped Paket Servisi San ve Ticaret A.S., its existing service agent in Turkey. Specific terms of the deal were not disclosed.

Leadership of the new venture will come from Unsped CEO Haluk Undeger, who has grown the operation in Turkey to be UPS's largest service contractor. Undeger will also own a minority share in the new joint venture. Closing is expected to occur in the next 30 days, subject to the satisfaction of customary conditions.

"This emerging area covers trade to and from 21 countries where UPS is experiencing increased demand," said Dan Brutto, president of UPS International.  The countries served by the new Dubai operation will be: Afghanistan, Azerbaijan, Bahrain, Egypt, Iraq, Jordan, Kuwait, Kyrgyzstan, Kazakhstan, Lebanon, Oman, Pakistan, Qatar, Saudi Arabia, Syria, Tajikistan, Turkey, Turkmenistan, Uzbekistan, United Arab Emirates and Yemen.

"This part of the world has become a transportation bridge and ideal near-sourcing location for Europe, Russia and Asia," said Brutto

UPS first entered the Middle East in 1987 when it established import operations in Bahrain. The company expanded to offer a comprehensive service portfolio combining local expertise through service contractors and joint ventures within countries, initiating service in Turkey through Unsped in 1988. In 2004, Dubai, became an important gateway for "around-the-world" flights between Europe and Asia to link major business regions and leverage the UPS global network for sorting and bypass operations in the most efficient manner.