DLax85

FedEx Ground hub on schedule

KERNERSVILLE - Workers will start moving equipment into the $100 million FedEx Ground sorting hub in Kernersville in June, a company official said this week.

Construction is on budget and on schedule, said John Payne, the senior vice president of line haul, safety and maintenance for FedEx Ground.

"We're very happy with the construction, and our plan to open is on schedule for September 2011," Payne said Wednesday.

FedEx Ground is a small-package ground carrier and an operating company of FedEx Corp.

The hub is being built in Triad Business Park at Old Greensboro Road and West Market Street in Guilford County, within the Kernersville town limits.

Kernersville annexed the park in 2008.

When it opens next year, the hub will have 500 full- and part-time employees, of which about 150 will be new. Positions will include package handlers, maintenance technicians, and administration and management staff members.

There will be an additional 270 independent contractors, with 120 of the positions newly created.

Hiring is expected to begin in June 2011.

The company will move the operations of two of its Winston-Salem locations into the new hub, including its terminal in Union Cross Business Park.

"When the hub opens in September (2011) it will be able to sort 15,000 packages per hour," Payne said.

When the expansion is completed over the next three to five years, depending on the economy, the hub will sort 45,000 packages an hour and is expected to have up to 750 employees, he said.

Despite the current weakness in the U.S. economy, FedEx Ground has faired well. It reported revenue of $1.9 billion for its third quarter, up 7 percent from $1.8 billion for the same quarter a year ago.

Payne said that the new hub is needed to support the company's continued growth.

"We have a very large hub in Charlotte," he said. "That hub has been through a recent expansion and it is at capacity."

The City-County Utility Commission will provide water service to the park, and High Point will provide sanitary-sewer service through a deal with Kernersville.

Jeff Hatling, Kernersville's director of community development, said that the hub will provide job opportunities for residents and greatly enhance the town's tax base.

"It will also act as an anchor of the Triad Business Park, which will attract additional development," Hatling said.

Guilford County commissioners voted in July 2008 to give nearly $1 million to FedEx Ground if it brought up to 470 jobs to the area within six years.

FliFast

Seems that Brown is willing to give away market share by reducing block hours-as forecast for the next 5 years.

Gunter

DLax,

you seem very excited about the ground hub in GSO. Plan on riding the Semi
"jumpseat" to work? Will there be a choice of departure times now?

DLax85

Gunter --- you are a strategic thinker.

GSO is at the crossroads of I-40 (East/West) and I-85 (North/South)...with new Ground and Air hubs.

...and it's all being built with Fred's own money (unlike AFW).

I'm not interested in jumpseats ---- I'm interested in how to invest in warehouses in that area.

It appears GSO has some strategic importance.

Busboy

"Fred's own money"? Are you talking about Fred Smith? You mean he's loaning FDX Corp the money to build it, or what? I'm sure you're aware that he owns less than 5% of FDX. You'd be more accurate saying that "Dodge and Cox, Inc." or "Primecap Management Company" are funding the project. As, each of them hold a much larger stake in FDX, than Mr. Smith.

Just sayin'...

DLax85

You are correct ---- by "Fred's own money", I was casually referring to FDX capital investment.

I've heard many folks say "GSO will never be fully utilized --- just look at AFW".

It's my understanding a lot of the AFW infrastructure was funded by other sources ---- GSO air and ground hubs are FDX capital investments.

MD11Fr8Dog

And some funding by 4a2b....