UPS saves $13.5M with AI-powered cargo tracking at Worldport hub

UPS has deployed its Gateway Technology Automation Platform (GTAP) at Worldport, its Louisville air hub, using AI and machine learning to transform cargo operations through smart asset tracking and digital communications. The initiative identified $13.5 million in savings in 2024 and is projected to deliver $24 million in cost savings this year, while improving on-time performance and operational safety at the world’s third-busiest cargo airport.

The scale of operations: Worldport processes an enormous volume of cargo with cutting-edge logistics infrastructure that demands precision coordination.

• The 5.2 million square foot facility employs more than 20,000 people and operates 580 aircraft, including 290 large-body UPS jets.
• The hub moves approximately 560,000 packages per hour, making it a highly intensive operation.
• “It’s a very intense operation,” says Alp Kayabasi, president of IT at UPS.

The challenge: UPS faced significant operational inefficiencies due to manual processes and communication constraints that limited visibility and centralized management.

• Asset tracking at Worldport previously relied on labor-intensive, error-prone manual processes.
• Communication between load planners and ground crews was severely constrained by land mobile radio requirements.
• The system required close physical proximity from ramp to building, forcing decentralized planners to be physically present for any contact.

Smart ULD innovation: UPS digitized its unit load devices (ULDs) with custom sensors to enable precise global tracking and real-time location services.

• UPS operates over 60,000 ULDs globally—containers used to load freight and mail on aircraft.
• The company engineered custom sensors since no commercial off-the-shelf solution met their specific requirements.
• The sensors needed to provide frequent updates, be shock resistant, and comply with strict FAA and FCC regulations.
• UPS developed a specialized power management system to ensure battery longevity without frequent recharging, since solar power wasn’t viable for devices inside aircraft or enclosed buildings.

Ramp Chat communication platform: UPS developed a centralized communication system to replace inefficient land mobile radio operations.

• Ramp Chat serves as a mobile application with multiple carrier capabilities and backup communication protocols.
• The platform centralizes load planning operations and ensures high degrees of reliability.
• The system eliminates Worldport’s previous reliance on constrained land mobile radio communications.

AI-driven optimization: The combination of smart ULDs and digital communications enables sophisticated AI and machine learning applications for operational efficiency.

• An algorithm determines which tugs (freight transfer vehicles) are best positioned to most efficiently load and unload ULDs.
• AI helps balance weight and adjust equipment on aircraft.
• The system predictively determines where additional ULD inventory is needed around the world.
• “The balance and movement of those assets are now artificial intelligence-driven,” Kayabasi says. “That was something we couldn’t have done without proper tracking of these assets.”

Implementation approach: UPS emphasized business-focused development and stakeholder engagement as critical success factors.

• The team used product management mindset and lean agile practices to deliver new features quickly.
• Kayabasi advises using business rather than technology as the primary lens for focusing efforts.
• “How do we ensure the investment we’re making in the technology moves the business towards their objectives?” he asks.

What they’re saying: Leadership emphasizes the importance of communication and change management in technology transformation.

• “Change is hard, but by over communicating, creating training plans, and safety around the change you’re making, you can gain allies to help support you moving forward,” Kayabasi explains.
• The GTAP initiative has earned UPS a 2025 CIO 100 Award in IT Excellence for its comprehensive approach to operational transformation.