FedEx is to make an additional $450 million investment in its FedEx Express World Hub in Memphis, Tennessee to meet future growth.
The move will accelerate the modernisation and expansion project which was announced in March 2018 and now totals more than $1.5 billion.
The FedEx World Hub, which currently has 11,000 team members and 163 aircraft gates, is the largest sort facility in the FedEx Express global network. Due to growing customer demand, FedEx has approved plans to make additional investments at the Memphis World Hub.
Tennessee Governor Bill Lee joined FedEx Corp. officials on Friday (2 August) to announce the additional $450 million investment.
The investment will exceed $1.5 billion over the next six years to facilitate construction of a new sort facility, installation of state-of-the-art systems and construction of a new bulk truckload building to support changing e-commerce needs.
“FedEx continues to be both a global leader and a Tennessee icon,” said Lee. “In a fast-paced market, we are proud of this company for continuing to invest with an eye on the future and supporting more than 30,000 Memphis area employees.”
Hub modernisation efforts are expected to be completed by 2025 with significant job creation along the way. The Memphis Hub is currently home to 11,000 employees.
“Thank you to Governor Lee and the State of Tennessee for their support of FedEx and this transformational project at the FedEx Express World Hub in Memphis,” said Raj Subramaniam, president and chief operating officer of FedEx Corp.
“Our additional investment will accelerate this modernization project, ensuring that we continue to provide outstanding service to our customers around the world and the best workplace for the thousands of FedEx team members who make our Memphis World Hub operations possible every day and night.”