FedEx Express to expand Indianapolis hub

FedEx Express to expand Indianapolis hub

   FedEx Express said last week it plans to expand one of its six major domestic hubs, Indianapolis International Airport, aiming to increase its package processing capacity there by more than 30 percent to 99,000 packages per hour.

   The project includes a 400,000-square-foot expansion to the hub’s existing sort facility and the construction of a 175,000-square-foot secondary sort building. Two maintenance buildings, including a 40,000-square-foot facility for aircraft maintenance and an 8,000-square-foot facility for ground support equipment, also will be built, pushing total hub growth by more than 600,000 square feet. Construction is expected to begin soon with the expanded system operational by December 2008.

   FedEx said the expansion will add up to 800 jobs, bringing the hub’s employment level to nearly 5,000.

   “This project will help ensure that we have the required processing capacity for the added volume in Indianapolis,” said David Bronczek, FedEx Express’ president and chief executive officer.

   At the same time, the company extended by 12 years its multiyear lease at the airport from 2016 to 2028. Under the agreement, the airport authority will fund, construct and lease back to FedEx five widebody aircraft gates by December, with construction expected to begin in late May. There are options for up to nine more gates to be constructed by Dec. 1, 2008. FedEx has 61 gates at the hub, 38 for widebody aircraft and 23 for narrow-body aircraft.

   FedEx Express’ other domestic hubs are located in Memphis, the company’s world headquarters; Newark, N.J.; Fort Worth, Texas; Oakland, Calif.; and Anchorage. FedEx also is building a hub in Greensboro, N.C., scheduled to be operational in 2009.