FedEx Corp. announced today the company will make an additional $450 million investment to the $1.1 billion Memphis Hub modernization project previously announced in March 2018.
The investment over the next six years will include construction of a new sort facility, installation of state-of-the-art systems and the addition of a new bulk truckload building to support changing e-commerce needs.
FedEx Corp. is investing an additional $450 million to improve operations at its busy hub in Memphis.
The shipping giant’s announcement Friday at Memphis International Airport increases its investment toward modernizing its Memphis hub to about $1.5 billion.
The company announced in March 2018 a $1.1 billion plan to build a sorting facility, install new systems and construct a new bulk truckload building to support internet commerce needs over the next six years. FedEx has said the investment will help improve its efficiency and reliability as it delivers packages throughout the world.
Raj Subramaniam, president and chief operating officer of FedEx Corp., said the additional investment announced today “will accelerate this modernization project, ensuring that we continue to provide outstanding service to our customers around the world.”
The FedEx Memphis hub currently has 11,000 employees, and more jobs are expected to be added.
“FedEx continues to be both a global leader and a Tennessee icon,” Tennessee Gov. Bill Lee said today in an announcement of the expansion. “In a fast-paced market, we are proud of this company for continuing to invest with an eye on the future and supporting more than 30,000 Memphis area employees.”
The expansion by FedEx comes as the Tennessee Valley Authority said today it has helped attract more than $8 billion in new and expanded investments in its 7-state region during the first nine months of the current fiscal year. Collectively, those investments are projected to add or retain 58,500 jobs.
The FedEx announcement will help push up TVA’s total investment in fiscal 2019 closer, but likely still short of, the record high or more than $11 billion announced in 2018.