Airport clears path for FedEx upgrade of its hub

Memphis International Airport officials Thursday backed two measures related to FedEx’s $1 billion, six-year expansion of the FedEx Express World Hub.

The airport board amended a master lease with FedEx to remove 24 buildings that are targeted for demolition as part of the FedEx Hub Transformation Project.

Also approved were repairs to the former Ned W. Cook Airfield Maintenance Facility, which was leased to FedEx in preparation for the hub overhaul.

About 150,000 square feet of older, obsolete buildings are slated to be cleared from the heart of the hub to make way for new construction.

They include World War II era hangars, the original hub administration building, former Tennessee Air National Guard (TANG) buildings and several low-rise office-warehouses known as Southwide buildings.

TANG relocated to the southeast corner of the airport in 2008 as part of a land swap to free up expansion space for FedEx.

Memphis-Shelby County Airport Authority president and chief executive Scott Brockman said the airport isn’t being asked to issue bonds for FedEx, but it has given the project “behind the scenes” support.

The airport vacated administration and airfield maintenance buildings so FedEx could move operations there from elsewhere at the hub. “This whole thing is just dominoes,” Brockman said. “One at a time, (it) has to fall in the right places.”

FedEx announced Wednesday it would spend $1 billion on new sorting and truck loading facilities, automation and other improvements at the Memphis hub starting in 2019.

Airport board chairman Pace Cooper said, “That announcement really was exciting and such a good feeling for this Airport Authority, to see our big gorilla, our No. 1 tenant, show continued strength and optimism about consolidating and doing as much activity in Memphis as possible.”

“While they have many hubs that are important, this kind of huge commitment shows that this is going to remain the big one, and so we’re thrilled,” Cooper said.

The lease amendment would cut FedEx’s rent payments by $22,520.85 a year, but officials said a general increase in lease rates starting July 1 would negate that savings.

Reach reporter Wayne Risher at (901) 529-2874 or wayne.risher@ commercialappeal.com.