Fedex to invest $450M in Memphis hub
Fedex is investing an additional $450 million into the Fedex Express World Hub in Memphis, company officials announced August 2.
The hub based at the Memphis International Airport is in the midst of a modernization plan announced in 2018 to pivot the hub more toward new technologies and automation. With the additional investment announced August 2, that plan will total $1.5 billion.
Fedex said the additional investment is because of “growing customer demand” in a news release. The project is expected to wrap up by 2025 “with significant job creation along the way,” according to the Tennessee Department of Economic & Community Development.
“As we announced in 2018, the hub project represents the next chapter in a long-term commitment in investing in the city of Memphis and the state of Tennessee,” said Fedex Express CEO Don Colleran.
The project calls for the construction of a large new sorting facility, “state-ofthe-art” sort systems, construction of a bulk truckload building and a new area to better handle oversized shipments indemand due to the e-commerce boom, Colleran said.
Fedex employs around 11,000 people at the hub, who support an operation that handles hundreds of thousands of items every hour.
Gov. Bill Lee, who was on hand for the announcement, said the additional investment solidifies the logistics giant’s presence in the Memphis community.
“Not only do they employ 40,000 people in the state of Tennessee, but companies come here in greater measure because of the commitment of Fedex and the expansion of this commitment,” Lee said.
Over the past year, Fedex Express has pointed to a slowing global economy as the driver of less-than-stellar financial results.
Fedex Express hub activity showed a year-over-year decline in June, the same month it cut U.S. ties with Amazon.