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FedEx Ground chooses site for new Ohio distribution hub

By The Trucker News Services
Posted Dec 12th 2007 4:31AM

getnewsphoto_014.jpgPITTSBURGH — As part of a multi-billion dollar network expansion plan to nearly double average daily hub package volume capacity in North America, FedEx Ground has chosen a 127-acre site in Perrysburg Township, Ohio, as the location for a new hub to replace its existing Toledo operation.

Total cost for the project is estimated to be $87 million, including land, construction and material-handling equipment. Once the hub is operating, FedEx Ground, through payments for property taxes, will be one of the largest contributors to the local Rossford City School’s annual budget, according to the FedEx news release explaining the plan.

The 400,000 square-foot facility will be built on Buck Road near the I-75 interchange. When it opens in 2009, the new hub will feature the latest automated material handling technology designed to initially process 22,500 packages per hour and 45,000 packages per hour when it eventually reaches full capacity after a projected expansion. The current workforce of nearly 550 employees and independent contractors is projected to eventually increase to more than 800, the company said.

“Enhancing our distribution capability in the Midwest is an important step in our ongoing efforts to increase the size, speed and efficiency of our network,” said Michael P. Mannion, senior vice president of Operations for FedEx Ground. “This new facility will help us meet the growing demand of local shippers and serve as one of just two gateways for shipments destined to Canada.”

Also part of the project will be the creation of a staging area — or triples pad — on a 44-acre parcel of land in Rossford that is adjacent to the interchange of the Ohio Turnpike (exit 64) and I-75. A parking lot will be constructed on a portion of that land and used to reconfigure tractor-trailers.

The Ohio Turnpike allows triples — three trailers pulled by a tractor — on its roads, but they are not permitted to travel on other highways and roads in the state of Ohio. Drivers of FedEx Ground triples will use this staging area to unhook one of the trailers before driving to the hub about one mile away, the company noted.

The Perrysburg site was chosen because of its ease of access to major highways, its proximity to customers’ distribution centers and a strong local labor pool from which to recruit employees, according to the company.

Site work is expected to begin immediately.

FedEx Ground is the ground small-package delivery unit of FedEx Corp., operating 29 hubs and more than 500 local pickup and delivery facilities. The company recorded annual revenue of $6 billion in fiscal year 2007.

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