UPS Expands Memphis Facility
25 June 2014 - 11:06PM
Construction recently began to expand by one-third the UPS® (NYSE:
UPS) package distribution facility on Swinnea Road in Memphis.
The project will add approximately 140,000 square feet of
building space bringing the total to more than 430,000 square feet
at an estimated cost of $70 million. The facility will improve
processing rates through increased capacity and expanded use of
UPS's next generation sorting technology when completed in early
2016.
UPS expects to add 350 new jobs over a three-year period to meet
volume growth at this site. These jobs include tractor trailer and
delivery drivers, package handlers, management, maintenance and
support staff. According to the Economic Development Growth Engine
for Memphis and Shelby County (EDGE), the project will create
nearly $9.8 million in new tax revenue for the metro area.
The larger facility footprint and new sorting technology will
handle increasing UPS volume in the mid-South driven largely from
double-digit e-commerce volume growth. The facility's
automated conveyors will sort packages more efficiently than
conventional conveyor systems and six-sided scanning cameras will
capture package data and sort packages automatically.
"Facility upgrades will help give us the latest technology and
additional capacity to process both ground and air express volume
growing from e-commerce business shippers located here, and
consumer demand that is driving online retail sales," said Ken
Harms, UPS president of the Mid-South District.
The Memphis UPS hub is a centerpiece for the efficient movement
of package volume between Alabama, Arkansas, Louisiana, Mississippi
and Tennessee. The site currently employs more than 1,300 employees
locally.
Situated on 83 acres of land adjacent to Memphis International
Airport, the facility integrates processing both for the UPS air
gateway and ground hub, as well as dispatch for local pickup and
delivery operations in the area. The company is leasing an
additional 27 acres from the Airport Authority which will support
an 80 percent increase in package processing.
Another project component is expansion of the surface yard for
tractor trailers to provide a larger staging ground for packages
coming into and out of the building.
Some preliminary improvements will be in place by November when
UPS increases its capacity for the peak holiday season which is
expected to grow from both e-commerce and retail omni-channel
distribution patterns.
UPS also recently installed a new UPS Liquefied Natural Gas
(LNG) fueling station on the Memphis property. As a part of UPS's
"rolling laboratory" approach to alternative fuel technologies, 59
new LNG tractor trailers have been placed in Memphis and join other
new LNG big rigs fueling at new stations built in Nashville and
Knoxville, Tenn., and Jackson, Miss.
About UPS
UPS (NYSE: UPS) is a global leader in logistics, offering a
broad range of solutions including the transportation of packages
and freight; the facilitation of international trade, and the
deployment of advanced technology to more efficiently manage the
world of business. Headquartered in Atlanta, UPS serves more than
220 countries and territories worldwide. The company can be found
on the Web at ups.com® and its corporate blog can be found at
blog.ups.com. To get UPS news direct, visit
pressroom.ups.com/RSS.
# # #
CONTACT: Dan Cardillo
404-828-8744
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Aug 2024 to Sep 2024
United Parcel Service (NYSE:UPS)
Historical Stock Chart
From Sep 2023 to Sep 2024