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UPS Boosts Its Presence in Penang With New Package Center

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Key Takeaways

  • UPS opens a new 20,000-sq-ft package center in Penang Science Park North to enhance service reach.
  • New facility extends pickup times by up to two hours for Express and Worldwide Express Freight shipments.
  • Expanded Penang Airport hub boosts processing capacity, linking firms to UPS's 11 weekly flights.

United Parcel Service, Inc. (UPS - Free Report) is expanding its presence in the Penang area to capitalize on new business opportunities. To this end, UPS has announced the opening of a new package center in Penang, aimed at improving services for multiple customers across the city.Located in Penang Science Park North, the new center will span across 20,000 sq ft.

The new service is expected to increase pickup times by up to two hours for exports of UPS’ Express and Worldwide Express Freight shipments for businesses in eight areas, including Butterworth, Batu Kawan and Bayan Lepas. The extended timeline will be beneficial for outbound shipments. Also, businesses in Batu Kawan, Perai, Penang and Kulim, Kedah will receive deliveries faster.

Apart from the new launch, UPS has also increased the size of its existing hub at Penang Airport. This shall increase the processing capacity and help businesses in Penang easily access the global UPS network.

Ingrid Sidiadinoto, senior managing director of UPS Malaysia, stated, “When we talk to our customers, what many of them ask for is more hours in a day. Extending pickup times effectively gives them that; extra time to receive and ship more orders every day. Our enhanced airport hub then allows us to process these shipments efficiently when they arrive or leave on one of the 11 weekly UPS flights we have serving Penang.”

Sidiadinoto further added, “Businesses all over the world are evaluating and learning from the events of recent years and looking to build more resilience into supply chains as a result. Malaysia is in a good position to capitalise on some of these trade lane shifts and Penang is central to that. We’re here to help our customers make the most of the opportunities available to them. We’re excited about the future growth potential for businesses in Penang”.

To Conclude

As businesses adapt to shifting global trade patterns and supply chain realignments, the latest investment by UPS in Penang appears to be a strategic business move. The newly announced package center in Penang, along with the expanded airport hub, is expected to offer smart warehousing and advanced automation processes across the logistics sector in the Malaysian market.

This marks the latest in a series of investments made by UPS to strengthen its network in the Malaysian industry. In May 2025, UPS introduced a new service in Johor offering businesses across the state next-day delivery to and from destinations across the Asia Pacific region. Prior to this, was an earlier service enhancement in 2024, which allowed deliveries to and from more than 50 countries across the Americas within the same two-day timeframe.

UPS’ Zacks Rank

Currently, UPS carries a Zacks Rank #4 (Sell).

Stocks to Consider

Investors interested in the Transportation sector may also consider Wabtec Corporation (WAB - Free Report) and Delta Air Lines, Inc. (DAL - Free Report) ). Each stock presently carries a Zacks Rank #2 (Buy).  You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Wabtec has an impressive earnings surprise track record, having surpassed the Zacks Consensus Estimate in three of the last four quarters (missed the mark in the remaining quarter), with the average beat being 5.41%. The Zacks Consensus Estimate for WAB’s 2025 earnings has been revised 1.60% upward in the past 90 days.

Shares of Wabtec have gained 10.6% over the past year. WAB’s 2025 earnings are expected to grow 17.59% year over year. 

Delta Air Lines has an encouraging earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in three of the trailing four quarters (missed the mark in the remaining quarter), delivering an average beat of 4.80%. Shares of DAL have rallied 15.1% over the past year.

The Zacks Consensus Estimate for DAL’s 2025 earnings has been revised 13.3% upward in the past 90 days. DAL has an expected earnings growth rate of 18.7% for the current year.


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