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A wholly owned subsidiary of United Parcel Service of America Inc. has entered into a temporary access agreement with the Des Moines International Airport for space to handle large freight to be distributed to the U.S. Postal Service.

“Evergreen (Shipping Agency (America) Corp.) used to handle cargo for FedEx (Corp.) and pulled out of the relationship; UPS has taken that and the result is they expanded their business here a little bit,” said Roy Criss, a spokesman for the airport.

At the Des Moines International Airport Board’s meeting on April 1, members recommended that the Des Moines City Council approve a lease agreement for the Cargo Building with UPS Cartage Services Inc.

Until a decision is made by the council, the board approved a temporary access agreement for the Cargo Building with UPS Cartage. The temporary building access began on April 1. A six-year lease (a two-year lease, with two two-year options), could begin on May 1 if approved by the council, said Craig Smith, DSM’s aviation director.

UPS Cartage, a unit of UPS that handles heavy freight (more than 150 pounds) rather than packages, will unload, sort and distribute cargo flown in on FedEx planes for the USPS.

“This is an expansion of UPS’s normal operation,” said Tim Stiles, the airport’s deputy director of finance and administration. “It is unique; FedEx and UPS don’t typically work side-by-side on a project like that.”

UPS Cartage would lease 10,000 additional square feet of space each year, for a total of $91,500 a year. UPS makes up the biggest portion, 60 percent, of DSM’s cargo business, Stiles said. UPS paid the airport more than $2 million in the fiscal year ended June 30.

UPS payments to DSM for fiscal year ended June 30, 2007

Note: Telephone and internet fees not included
Source: Des Moines Aviation Department