As part of an ongoing national expansion plan, FedEx Ground, the small-package ground delivery unit of FedEx Corp., (NYSE: FDX), today is celebrating the opening of a major distribution hub in Troutdale, Ore., replacing its former Portland operation on Swan Island. Leading the celebration of the more than $130 million facility is FedEx Ground western region vice president John Hiltz and Oregon Senate Deputy Majority Leader Laurie Monnes Anderson.
FedEx Ground distribution hub in Troutdale, Ore. (Photo: Business Wire)

FedEx Ground distribution hub in Troutdale, Ore. (Photo: Business Wire)

The new 447,000 square-foot operation sits on 77 acres of land and is the first development in the Troutdale Reynolds Industrial Park which was an aluminum reduction site for nearly 60 years. Earlier this year, the company was awarded an Oregon Brownfield Award for the work done in transforming the former brownfield site. The third annual award was sponsored by Business Oregon and the Oregon Department of Environmental Quality.

The package processing hub features advanced material-handling technology that moves packages at 540 feet per minute along nearly 15 miles of conveyor belts, processing up to 22,500 packages per hour. With projected future expansion, the facility will be able to process 60,000 packages per hour at full capacity.

“Enhancing our distribution capability in the Pacific Northwest is an important step in our ongoing efforts to increase the size, speed and efficiency of our network,” said John Hiltz. “This new facility will help us meet the growing demand of local shippers, improve service on packages coming into the area for final delivery and serve as one of just two gateways for shipments destined to Canada.”

Currently about 750 employees, independent contractors and their drivers are working out of the new hub. About 100 of those people have been added since the hub began operating in August. Eventually, the workforce is expected to exceed 1,000 people.

The new FedEx Ground hub is part of the company’s nationwide network expansion to boost daily package volume capacity and further enhance the speed and service capabilities of its network. Since FedEx Ground embarked on the multi-year expansion program in 2002, the Portland hub becomes the tenth new hub featuring advanced material-handling systems that has been added to the network while more than 500 local facilities have been expanded and/or relocated.

The network enhancements have resulted in accelerating ground service delivery by one day or more in more than half of the United States. FedEx Ground delivers more than 60 percent of packages in two days or less and more than 80 percent of packages in three days or less. Additionally, average daily package volumes have increased by more than 60 percent, from 2.1 million in 2003 to more than 3.5 million today.

About FedEx Ground

FedEx Ground specializes in cost-effective, small-package ground shipping, offering dependable business-to-business delivery or convenient residential service. With a network of more than 500 distribution hubs and local pickup-and-delivery terminals, FedEx Ground has a workforce of more than 70,000 employees and independent contractors using more than 22,000 motorized vehicles to deliver more than 3.5 million packages a day throughout the United States and Canada. The company reported annual revenue of $7.4 billion in fiscal year 2010.

About FedEx Corp.

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenues of $36 billion, the company offers integrated business applications through operating companies competing collectively and managed collaboratively, under the respected FedEx brand. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 280,000 team members to remain "absolutely, positively" focused on safety, the highest ethical and professional standards and the needs of their customers and communities. For more information, visit news.fedex.com.

NOTE TO EDITORS: Broadcast quality b-roll and photography can be found at https://medialinx.alliedvaughn.com/clients/portals/FedEx/Newsrm/

User ID: FED-EX.4

Password: FE.114

Photos/Multimedia Gallery Available: http://www.businesswire.com/cgi-bin/mmg.cgi?eid=6488006&lang=en

Copyright Business Wire 2010