FedEx Corp. has announced a $1.8 billion, six-year expansion plan for its FedEx Ground subsidiary, which will nearly double its daily package volume capacity from 2.5 million to 4.8 million by the end of fiscal year 2009.
The multi-phase plan includes the addition of 10 new and 23 expanded central distribution hubs, as well as the expansion or relocation of more than 300 existing facilities.
FedEx Ground has grown from handling almost 1.4 million packages per day three years ago to nearly 2.1 million packages per day in the most recent fiscal quarter. On a year-over-year basis, volume surged 33% in the same fiscal quarter.
To meet its long-term package processing needs, FedEx Ground will open new hubs in Memphis, Dallas, Cincinnati and Hagerstown, Md., by 2006. By the end of fiscal year 2009, the company plans to open six more hubs in locations yet to be named.
