FedEx Ground, the FedEx small-package ground delivery unit, yesterday celebrated the opening of itsnew $90m distribution hub at Toledo, northern Ohio, as part of its ongoing network expansion across
the USA.The new 584,000 sq ft (54,255 sqm) facility, located on 130 acres (52.6 hectares) of land inPerrysburg Township, Ohio, is nearly five times the size of the former FedEx Ground facility inToledo which it has replaced.
The hub features advanced material-handling technology that will boost processing rates to22,500 packages per hour on 15 miles of conveyor belts. With projected future expansion, thefacility will have the capability of processing 45,000 packages per hour at full capacity, thecompany announced.
“Enhancing our distribution capability in the north central region is an important step inour ongoing efforts to increase the size, speed and efficiency of our network,” said Jim Primm,vice president, Central Division, FedEx Ground. “This new facility will help us meet the growingdemand of local shippers and serve as one of just two gateways for shipments destined to Canada.”
In conjunction with this major investment, the move will create more than 50 new positions,increasing the hub workforce from 420 employees and independent contractors to more than 470. Thenew hub will serve the company’s strong customer base in the Western Ohio and Southern Michiganarea.
The new FedEx Ground hub is part of the company’s nationwide network expansion to boost dailypackage volume capacity and further enhance the speed and service capabilities of its network.Since embarking on the multi-year expansion program in 2002, FedEx Ground has opened eight new hubsfeaturing advanced material-handling systems and has expanded and/or relocated more than 500 localfacilities.
The network enhancements have resulted in accelerating ground service delivery by one day ormore in more than half of the United States. FedEx Ground delivers more than 50% of packages in twodays or fewer and more than 80% of packages in three days or fewer. Additionally, average dailypackage volumes have increased by more than 50%, from 2.1 million in 2003 items to more than 3.4million items today. The company reported annual revenue of $7 billion in fiscal year 2009.
