UPS to accommodate Next Day Air volumes with major investment

UPS to accommodate Next Day Air volumes with major investment

UPS says it will be investing $750 million over the next 15 years to expand the capacity of  UPS Worldport, Louisville, Kentucky.

Next Day Air volume is growing rapidly and healthcare, e-commerce and small business customers are demanding faster delivery times around the globe. In response, UPS Airlines is growing its air network, including its support structure at its home base in Louisville.

“These projects are part of UPS’s overall strategy to make investments in its global logistics network to enable continued growth in strategic markets,” said UPS Airlines President Brendan Canavan. “That includes an infrastructure that allows us to continue providing our customers with safe, reliable and on-time service.”

Most notably, UPS will build a new $220 million, 262,000 square-foot-hangar to accommodate line maintenance on its growing air fleet. The company is in the process of adding nearly 50 new, converted and leased 747-8s and 767s by 2022.

The new hangar will be large enough to simultaneously accommodate two 747-8F aircraft, the largest in the UPS Airlines fleet. Due to the configuration of property at SDF, the new hangar will be built on leased land at the northwest corner of the airport, on the opposite end of the property from the Worldport campus. Permitting and construction will begin in 2020, with the project scheduled for completion in 2022.

“We are grateful for public sector support with these incentives,” said Canavan. “They are a win-win, allowing UPS to expand in Kentucky, while increasing tax revenues and creating jobs in the city and throughout the state.”

“What started as a strategic investment by UPS 30 years ago has grown into a worldwide asset for the company and the city of Louisville,” said Mayor Greg Fischer. “UPS’ continued investments in our city have created opportunity throughout our economy and across specialized logistics sectors like high-tech, biomedical and rapid prototyping. We are proud to have this outstanding corporate citizen in our city and we look forward to creating more opportunities for success and growth in the future. ”

 

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