FedEx Ground Chooses Site for New US Mid-South Distribution Hub
As part of a $1.8 billion network expansion plan to nearly double average daily hub package volume capacity in North America, FedEx Ground, an operating unit of FedEx Corporation, (NYSE:FDX), has chosen a 93-acre site in Olive Branch, Miss., as the location for the fourth of nine new package distribution hubs to be constructed over the next six years.
The 330,000 square-foot facility, to be located in the DeSoto Distribution Center, will be the second major FedEx Ground sortation center in the Memphis area. When it opens in 2006, the new hub will feature the latest automated material handling technology designed to process 22,500 packages per hour and will have a workforce of approximately 60 full-time and 325 part-time workers and 70 independent contractors.
"Enhancing our distribution capability in the Mid-South area is an important step in our ongoing efforts to increase the size, speed and efficiency of our network," said Daniel J. Sullivan, president and chief executive officer of FedEx Ground. "This new facility will complement our existing Memphis operations to better serve a growing regional customer base and also will act as a gateway for shipments destined for other parts of the country."
To further meet the needs of shippers in the region, the company's current hub at 555 Compress Drive in Memphis recently underwent a $23 million, 47,000 square-foot expansion. The project included the installation of the most advanced material handling systems, increased the number of pickup and delivery van positions from 40 to 72, and brought the facility's total size to 233,000 square feet.
The Olive Branch site was chosen because of its complementary distance from the expanded Memphis operation, its proximity to customers' distribution centers and major highways, and a strong local labor pool.
Subject to final permits, infrastructure and other approvals, site work is expected to begin in April with completion targeted for the spring of 2006. Three additional FedEx Ground hubs are slated for opening in 2005 in the metropolitan areas of Dallas, Cincinnati and Hagerstown, Md.
About FedEx Ground
FedEx Ground is the second largest small-package ground carrier in North America, operating 27 major hubs and more than 500 local pickup and delivery facilities. The company recorded annual revenue of $3.7 billion in fiscal year 2003.
About FedEx Corp.
FedEx Corp. (NYSE:FDX) provides customers and businesses worldwide with the broadest portfolio of transportation, e-commerce and document-management services. With annual revenues of $25 billion, the company offers integrated business applications through operating companies competing collectively but managed collaboratively, under the respected FedEx and Kinko's brands. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 225,000 employees and contractors to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit www.fedex.com.
NOTE TO EDITORS: Press releases and additional information about FedEx Corp. and its operating companies can be found on the World Wide Web at 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.
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CONTACT: FedEx Ground
Allison Sobczak, 412-859-5498
[email protected]
