UPS expands in Costa Rica with acquisition of two service contractors

US GLOBAL package company United Parcel Service (UPS) is to acquire two packaging companies in Costa Rica which served as long-term authorised service contractors in a transaction expected to be complete in fourth quarter.

The transaction involves the purchase of assets and operations of small package delivery company Union Pak de Costa Rica that serves high-tech and medical device manufacturers. It will also acquire the brokerage company SEISA Brokerage that provides same-day customs clearance and delivery of shipments within the Costa Rica Free Trade Zone.

UPS Americas president Romaine Seguin said its existing relationship with these companies has been successful and will better serve its customers in a full suite of logistics services. This will increase UPS reach in Latin America, the company said.

Through these purchases UPS can provide customers with one source for small package, freight forwarding, brokerage, and contract logistics, with a stronger link to UPS's global transportation network, said a report from Atlanta area Air Cargo World.

It hopes to boost export trade lanes in Latin America and US by accessing multi-modal services of ocean and air freight through UPS Air Cargo and UPS Supply Chain Solutions that serve Costa Rica.