FedEx Ground Expands Chicagoland Operations


PITTSBURGH--(BUSINESS WIRE)--July 20, 2005--FedEx Ground, a leading small-package ground carrier and an operating company of FedEx Corp. (NYSE:FDX), today will celebrate the opening of a new automated distribution center in McCook, Ill.

The McCook facility is one of nine FedEx Ground automated satellites that complement the company's existing network of 28 U.S. hubs by enabling more direct loading of packages and faster processing.

The new terminal is part of a network expansion plan that includes the addition of nine hubs and the relocation or expansion of more than 290 pickup and delivery terminals through 2010. The nationwide expansion will boost the company's current average daily pickup capacity by nearly 70 percent over the next five years. This year, FedEx Ground opened new hubs in the metro areas of Cincinnati, Dallas and Hagerstown, Md. A fourth new hub, under construction near Memphis, will begin operations in 2006.

The new 156,000 square-foot facility in McCook is more than five times the size of the South Damen Avenue terminal it replaces and houses a workforce of more than 300 employees and independent contractors, including more than 100 new positions. The expanded operation is capable of processing 15,000 packages per hour and is equipped with the most advanced package-sortation technology including high speed conveyors and camera-based scan tunnels to maximize package sorting rates.

"The opening of the McCook facility is part of our ongoing efforts to enhance service and meet customer demand by increasing the size, speed and reliability of our network," said Paul Callahan, division vice president, FedEx Ground. "This new, larger automated facility will benefit shippers with faster and more efficient movement of their packages through the FedEx Ground network, as well as more complete package tracking information."

Located at Sergo Drive in McCook, the automated terminal provides pickup and delivery services for downtown and south Chicago, as well as parts of Cook County. The McCook facility is the company's second major expansion in the Chicago area. In April 2003, FedEx Ground opened a 107,000 square-foot automated terminal in Wheeling and it also operates a hub in Bedford Park, which transferred its local operations to the McCook facility.

The company is leasing the facility from developer Scannell Properties of Indianapolis. KCC Group Design + Build Inc. of Deerfield, Ill., constructed the terminal, which was designed by architect Precept Design, LLC also of Indianapolis. HK Systems, located in Milwaukee, Wis., and SICK, based in Minneapolis, Minn., provided the material handling installation and scanning systems, respectively. Commercial real estate broker Fischer & Company managed the transaction.