UPS says it will build a cargo hub in Shanghai to increase its share of China's ballooning international express delivery market. The manufacturing boom in China is expanding the need for air shipments of high-value manufactured goods and components. And not only do manufacturers need transportation, they also need more robust supply chain management services, which the global logistics giants say they're prepared to offer.

UPS' planned hub at the Pudong International Airport, due for completion in 2007, will handle 72 takeoffs and landings each week. The company currently operates Asian hubs in Hong Kong, Taiwan, and the Philippines.

FedEx will sign an agreement this month to establish Guangzhou's Baiyun Airport as its China hub. The Memphis-based company's existing hub in Subic Bay, the Philippines, is under lease until 2010.

Construction of FedEx's Guangzhou hub will begin in August 2006 with completion set for October 2008.