FedEx to Build New DC in Oregon

PORTLAND, Ore.--As part of an ongoing national expansion plan, FedEx Ground, a subsidiary of FedEx Corp., is building a distribution hub on a 77-acre site that will be double the size of the existing operation in Portland, Ore.

The 415,000-sq. ft. facility will be built in the new Troutdale Reynolds Industrial Park and will cost about $100 million, including land, construction and material handling equipment. Scheduled to open in 2010, the hub will feature the latest automated material handling technology designed to initially process 25,000 packages per hour and eventually 45,000 packages per hour when it reaches full capacity after a projected expansion. The workforce at opening is projected to include more than 500 full-time and part-time employees and about 200 independent contractor opportunities, many of which will transfer from the current facility.

The new FedEx Ground hub is part of a nationwide network expansion to boost daily package volume capacity and increase the speed and service capabilities of its network. Since embarking on the multi-year expansion program in 2002, FedEx Ground has opened seven new hubs and expanded and/or relocated more than 500 local facilities.

The network enhancements have resulted in accelerating ground service delivery by one day or more in more than half of the U.S. FedEx Ground delivers more than 50% of packages in two days or less and more than 80% of packages in three days or less. Additionally, average daily packages volumes have increased by more than 50% from 2.1 million in 2003 to more than 3.3 million today.

"Enhancing our distribution capability in the Northwest is an important step in our ongoing efforts to increase the size, speed and efficiency of our network," says John F. Hiltz, vice president of the western division for FedEx Ground. "This significantly larger facility will enable us to meet the growing demand of local shippers and transport shipments across the country. The city of Troutdale officials have been very receptive as we worked through the purchase, and we look forward to establishing our presence in the community."

The Troutdale 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.