Release Date:
Release ID: 5918

UPS Breaks Ground On Louisville Centennial Hub Expansion

$300 million project to triple size, add 300 jobs and increase service capacity for customers. Groundbreaking set for August 25.
The bulldozers are moving earth on UPS’s (NYSE: UPS) latest expansion project, bringing the rest of the Earth even closer to UPS customers in Kentucky and parts of Southern Indiana.

The company’s estimated $300 million investment will triple the size of the package facility to 838,000 square feet, and nearly double current sorting capacity to 85,000 packages per hour. In addition, the project will create a mix of 300 new full and part-time jobs.
“We are excited to have construction underway,” said Lou Rivieccio, president of UPS’s Ohio Valley District. “This project is a win for everyone involved. It will benefit our customers, generate jobs, and enhance economic development in Louisville and the surrounding region.”
“UPS is one of the major economic engines in the city and state. We are pleased that the company is continuing to invest to ensure outstanding service for shippers large and small,” Louisville Mayor Greg Fischer said.
The Centennial hub, constructed in 2007 during UPS’s 100th anniversary year, provides pickup and delivery operations for customers in Louisville and surrounding counties and serves as a transfer point for trailers moving to destinations beyond Kentucky. With its proximity to UPS Worldport air hub at Louisville International Airport, it also supports end-of-runway express service by allowing packages to be inserted into the Worldport air operations as late as 1:30 a.m.
“Centennial offers UPS customers the advantage of being at the center of the world’s largest package delivery company,” said Rivieccio. “It is one of UPS’s most important facilities.”
The expansion will take place in three phases and continue through 2020. In addition to increasing the building’s footprint, the project will modernize the hub’s conveyor technology, enhancing the flow of packages through the building, and increasing accuracy during sorting. The automated conveyors will move packages through the sorting process while capturing data used to route packages to the proper location for loading on outbound vehicles.
When the building first opened in May of 2008, sorting capacity was 40,000 packages per hour. The expansion of enhanced technology in the facility will increase capacity to 85,000 packages per hour, improving both reliability and quality of service provided to UPS customers.
“This expansion by UPS, a premier global shipping and logistics company, will continue improving speed, service and volume for UPS customers while strengthening Kentucky’s already significant distribution and logistics industry,” Kentucky Gov. Matt Bevin said.
Six-sided decode tunnels will replace traditional scanning to capture package information from address labels. Label applicators will place “smart labels” on packages for local delivery, providing UPS loaders faster instruction of a package’s proper staging location in a UPS vehicle prior to transport. This will improve accuracy and package integrity, while minimizing time in transit for UPS customers.
“The UPS hubs in Louisville have attracted dozens of businesses to the region that rely on fast and accurate shipping,” said Gov. Bevin. “The additional capacity and hundreds of new jobs this expansion at the Centennial Ground Hub will create will help UPS play an even greater role in Kentucky’s economic development future. On behalf of my administration and the people of Kentucky, I want to thank UPS for its continued commitment to the Commonwealth.”
UPS will host a groundbreaking event Thursday, Aug. 25 at 9:30 a.m. at the Centennial construction site, 8100 Air Commerce Drive. Invited guests will include Kentucky Governor Matt Bevin, U.S. Senator Rand Paul, Louisville Mayor Greg Fischer and other dignitaries.
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