FedEx Ground Selects Northern Kentucky Site for New Central Region Distribution Hub
FedEx Ground, an operating unit of FedEx Corporation, (NYSE:FDX), has chosen a 96-acre site in Boone County, Ky., as the location for a new 335,000 square-foot distribution hub to be opened in 2005.
Located off Mt. Zion Road in Enterprise V Industrial Park, the new distribution center will feature the latest automated package sortation technology and will be the third of 10 such facilities built over the next six years as part of the company's $1.8 billion network expansion plan. Announced in September 2002, the plan also calls for the expansion of 23 existing hubs and the relocation of more than 300 pickup and delivery terminals. The nationwide expansion will nearly double the company's average daily volume capacity from 2.5 million to 4.8 million packages in response to increasing customer demand.
The site for the new Northern Kentucky hub was chosen for its proximity to customers' distribution centers and major highways as well as its access to a strong local employee base. The facility will initially process about 22,500 packages an hour and is expected to house a workforce of more than 80 office and clerical employees, 300 package handlers, and 100 independent contractors when it opens in 2005. At full capacity, the new hub will process up to 45,000 packages per hour and could employ more than 235 office and clerical employees, 1,300 package handlers, and 400 independent contractors.
"This new facility will complement our Columbus, Oh., operation and enhance Ground service throughout the Central region," said Daniel J. Sullivan, president and chief executive officer of FedEx Ground. "We extend our appreciation to Boone County, Tri-Ed Economic Development, and Kentucky Economic Development Finance Authority officials for their assistance in making this project a reality."
The site was purchased from Toebben Ltd. of Crescent Springs, Ky., and ground breaking is planned for September. Three additional FedEx Ground hubs are slated for opening in 2005 and 2006 in the metropolitan areas of Dallas, Tx., Hagerstown, Md., and Memphis, Tenn.
About FedEx Ground
FedEx Ground, North America's second largest small-package ground carrier, has a network of more than 500 distribution hubs and local pickup-and-delivery terminals throughout the United States and Canada. The company reported annual revenue of $3.4 billion in fiscal year 2003.
About FedEx Corp.
With annual revenues of $22 billion, FedEx Corp. is the premier global provider of transportation, e-commerce and supply chain management services. The company offers integrated business solutions through a network of subsidiaries operating independently, including: FedEx Express, the world's largest express transportation company; FedEx Ground, North America's second largest provider of small-package ground delivery service; FedEx Freight, the largest U.S. provider of regional less-than-truckload freight services; FedEx Custom Critical, North America's largest provider of expedited time-critical shipments; and FedEx Trade Networks, North America's largest customs broker and a provider of international freight forwarding and trade facilitation services. FedEx ranked highest in the J. D. Power and Associates 2002 Small Package Delivery Service Business Customer Satisfaction Study(SM) in the categories of air, ground and international delivery services.
NOTE TO EDITORS: Press releases and additional information about FedEx Corp. and its operating companies can be found on the World Wide Web at http://www.fedex.com.
Certain statements in this press release may be considered forward-looking statements, such as statements relating to management's views with respect to future events and financial performance. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic and competitive conditions in the markets we serve, matching capacity to volume levels and other factors which can be found in FedEx Corp.'s and its subsidiaries' press releases and filings with the SEC.
All press materials related to this announcement are available on the World Wide Web at www.fedex.com.
