FedEx Ground has opened a new $125 million distribution hub in Chicago to boost daily packagevolume capacity and further enhance the speed and service capabilities of its network.
In conjunction with this major investment which is part of the company’s nationwide networkexpansion, the move is expected to create more than 30 new positions, increasing the hub workforcefrom 860 employees and independent contractors to nearly 900, FedEx Ground said in a statement.
Located in the metropolitan area of Chicago (Chicagoland), the new facility is adjacent tothe company’s original Chicago hub, which was one of the first three hubs built in 1985 when thecompany’s predecessor, RPS, Roadway Package Systems, Inc., began operations. The new 131,064 sqmfacility, which is nearly double in size, will provide increased processing rates of up to 30,000packages per hour, additional load and unload doors, more scan tunnels and sorters.
“Enhancing our distribution capability in the central region is an important step in ourongoing efforts to increase the size, speed and efficiency of our network,” said Jim Primm, vicepresident of the central division of FedEx Ground. “This new facility demonstrates the region’songoing importance as a major distribution and logistics centre, and will help us meet theincreasing demand of local shippers as we transport shipments within the Chicago area and acrossthe country.”
Since the launch of its multi-year expansion programme in 2002, FedEx Ground has opened sevennew hubs featuring the advanced material handling systems and has expanded and/or relocated morethan 500 local facilities. The network enhancements have accelerated ground service delivery by oneday or more in more than half of the United States. Additionally, average daily package volumeshave increased by more than 50% from 2.1 million in 2003 to more than 3.4 million today, thecompany added.
In addition to the new Chicago hub, there are eight other FedEx Ground facilities operatingin the area. The most recent additions are the two automated facilities in McCook and Wheeling,with a workforce of more than 414 and 330 employees respectively.
