FedEx Express and the Indianapolis International Airport have unveiled a major expansion projectfor the express carrier’s Indianapolis hub, its second-largest US domestic hub behind Memphis. Up
to approximately 800 additional employees could be hired, which would bring the hub’s employmentlevel to nearly 5,000 people.The expansion will increase package processing capacity more than 30% percent, from 75,000packages per hour to 99,000 packages per hour. The multi-year extended lease agreement alsoincludes construction of up to 14 additional wide-body aircraft gates.
Additional capacity is needed at the hub to meet forecasted long-term package-volume growth,particularly for international shipments. FedEx operates international flights from Indianapolis toEurope, Asia and Canada.
“This project will help ensure that we have the required processing capacity for the addedvolume in Indianapolis,” David Bronczek, president and chief executive officer of FedEx Express,said. “For FedEx customers, it reaffirms our focus to have world-class facilities that allow us toprovide an unmatched level of reliable shipping services across our global network.”
Alan B. Graf Jr., executive vice president and chief financial officer for FedEx Corp., added:“Capital investment in our hub network improves operational efficiencies that create solidshareholder value and further position FedEx as the indisputable industry leader.”
Plans call for a 400,000-square-foot expansion to the hub’s existing sort facility andconstruction of a 175,000 square-foot secondary sort building. Two maintenance buildings —including a 40,000 square-foot facility for aircraft maintenance and an 8,000 square-foot facilityfor ground support equipment — also will be built, pushing total hub growth by more than 600,000square feet. Construction is expected to begin soon and the expanded system operational by December2008.
As the airport’s major cargo carrier, FedEx Express also is extending its lease 12 years, from2016 to 2028. Under the agreement, the airport authority will fund, construct and lease back toFedEx five wide-body aircraft gates by this December, with construction expected to begin in lateMay. There are options for up to nine more gates to be constructed by Dec. 1, 2008. FedEx currentlyhas 61 gates at the hub, 38 for wide-body aircraft and 23 for narrow-body aircraft.
The last hub expansion in Indianapolis was completed in 1998, which tripled the facility’s sizeand doubled sorting capacity. FedEx began operating the hub in 1988. Indianapolis is one of sixmajor domestic hubs operated by FedEx Express. Other hubs are in Memphis, the company’s worldheadquarters, Newark, N.J., Fort Worth, Texas, Oakland, Calif., and Anchorage. FedEx also isbuilding a hub in Greensboro, N.C., scheduled to be operational in 2009.
