FedEx To Make $1 Billion Investment In Memphis Hub

Wednesday, March 14, 2018

FedEx Corporation Chairman and CEO Frederick W. Smith announced Wednesday the company is making a capital investment of more than $1 billion to modernize its Memphis hub and improve operational efficiency and reliability.

The Memphis hub project includes construction of a new large sort facility and installation of state-of-the-art sort systems, construction of a bulk truck load building, and a new area to improve handling of the oversized shipments that have increased with the growth in e-commerce. Following plan approval, construction is expected to begin in 2019 and be completed by 2025. 

“FedEx is known for delivering results across the globe, so we are incredibly grateful it calls Tennessee home and is doubling down here with this major investment,” Governor Bill Haslam said. “As the Memphis area’s largest employer, and a major economic driver across the state, this investment reflects FedEx’s continued commitment to Tennessee and will benefit current employees and the future workforce for years to come.” 

“I want to thank Governor Haslam and the state of Tennessee for their support of this investment in a transformational project for the FedEx Express hub in Memphis,” Mr. Smith said. “Modernization and expansion of the Memphis hub will ensure that we continue to provide outstanding service to our customers around the world and make this an even better place to work for the thousands of team members here who keep our operations running every day and night.”

In addition to improving operations, the investment in new systems will improve the environment for the thousands of FedEx team members who work at the Memphis hub, including improved cooling and break rooms, which will drive team member satisfaction, said officials.

The FedEx hub in Memphis, which currently has 11,000 team members and 163 aircraft gates, is the largest sort facility in the FedEx Express global network. It processes 47 percent of total FedEx volume and 69 percent of U.S. domestic volume each business day. FedEx employs an estimated total of 30,000 people in the Memphis area. 


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