Release Date: 27 December 2007
Release ID: 392
As part of a multi-billion dollar network expansion plan to nearly double average daily hub package volume capacity in North America, FedEx Ground, an operating unit of FedEx Corp., (NYSE:FDX), has chosen a 127-acre site in Perrysburg Township, Ohio, as the location for a new hub to replace its existing Toledo operation.
Total cost for the project is estimated to be $87 million, including land, construction and material-handling equipment. Once the hub is operating, FedEx Ground, through payments for property taxes, will be one of the largest contributors to the local Rossford City School’s annual budget.
The 400,000 square-foot facility will be built on Buck Road near the I-75 interchange. When it opens in 2009, the new hub will feature the latest automated material handling technology designed to initially process 22,500 packages per hour and 45,000 packages per hour when it eventually reaches full capacity after a projected expansion. The current workforce of nearly 550 employees and independent contractors is projected to eventually increase to more than 800.
“Enhancing our distribution capability in the Midwest is an important step in our ongoing efforts to increase the size, speed and efficiency of our network,” said Michael P. Mannion, senior vice president of Operations for FedEx Ground. “This new facility will help us meet the growing demand of local shippers and serve as one of just two gateways for shipments destined to Canada.”
Also part of the project will be the creation of a staging area – or triples pad – on a 44-acre parcel of land in Rossford that is adjacent to the interchange of the Ohio Turnpike (exit 64) and I-75. A parking lot will be constructed on a portion of that land and used to reconfigure tractor-trailers. The Ohio Turnpike allows triples – three trailers pulled by a tractor – on its roads, but they are not permitted to travel on other highways and roads in the state of Ohio. Drivers of FedEx Ground triples will use this staging area to unhook one of the trailers before driving to the hub about one mile away.
The Perrysburg site was chosen because of its ease of access to major highways, its proximity to customers’ distribution centers and a strong local labor pool from which to recruit employees.
Site work is expected to begin immediately.
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