The United Parcel Service (UPS) has signed a long-term lease and easement access agreement with Gary Chicago International Airport to begin express air shipment operations later this year. Although located in northwest Indiana, the airport serves the Chicago Metropolitan Area. The agreement includes 1,300 sqm of office space in the airport’s passenger terminal as well as 14,000 sqm of ramp, with enough space to park two A300-600(F)s.
The move paves the way for UPS service to begin operations in Gary later this year, ahead of the peak holiday shopping season. UPS will offer ‘Next Day Air Service’ at Gary each weeknight, with an UPS Airlines (5X, Louisville International) aircraft departing the airport for the company’s global hub at Louisville International before returning early the following morning.
“The Gary/Chicago International Airport is well-positioned to add additional capacity and flexibility to the UPS network, helping businesses in Northern Indiana and the Chicago area compete at e-commerce’s fast pace as they serve their customers,” said UPS Airlines President Brendan Canavan. In the US, ‘Next Day Air Service’ volume grew by 20.5% in 1Q 2020, the fourth consecutive quarter of double-digit increases.
UPS anticipates employing about 60 people at its Gary facility, including ground handlers, administrative positions, aircraft maintenance technicians and management employees.
The decision by UPS provides Gary with an important new tenant, but it also allows the airport to enhance its vital niche in the Chicago regional air traffic network. Chicago’s two major airports at Chicago Midway and Chicago O'Hare have high commercial air traffic use, allowing Gary to offer a vital alternative for cargo services in the region.
“UPS expanding its services to GCIA provides the airport with a critical competitive advantage and solidifies its role as the Chicago region’s third regional airport,” said the airport’s Board Chairman Timothy Fesko. “This is the latest private sector investment bolstering our operations capability and allows the airport to provide critical benefits to the Chicago Metropolitan Area and Northwest Indiana.”
