Subscribe to our free, weekly email newsletter!


UPS to expand Memphis-based package distribution facility

By Jeff Berman, Group News Editor
June 26, 2014

Transportation and logistics giant UPS said this week it kicked off construction to expand its Memphis-based package distribution facility by about one-third.

Company officials said that this effort will add roughly 140,000 square-feet of building space and bring its total to more than 430,000 square-feet, with an estimated cost of $70 million. And they added that when construction is completed in early 2016, this facility will improve processing rates through increased capacity and expanded use of UPS’s next generation sorting technology.

“The increase in volume in the Memphis area drove this expansion,” said Dan Cardillo, UPS spokesman. “This is largely a product of e-commerce in the form of more business-to-consumer shipments. Memphis attracts major shippers because its infrastructure facilitates the easy movement of goods in and out of the area. We continuously monitor the growing needs of our customers and make projections to meet that demand.  This planning process started well over five years ago.”

The UPS Memphis hub handles package volume between Alabama, Arkansas, Louisiana, Mississippi and Tennessee and has more than 1,300 employees. It is located on 83 acres adjacent to Memphis International Airport and integrates processing for the UPS air gateway and ground hub, in addition to dispatch for local pickup and delivery operations. What’s more, UPS said it is leading 27 acres from the Airport Authority to support an 80 percent pickup in package processing.

UPS added that this initiative will also focus on expanding the facility’s surface yard so that tractor-trailers will have a larger staging ground for packages entering and exiting the facilty.

Looking ahead, UPS also said that some early improvements in Memphis will take hold by November as it increases capacity for peak season, which is expected to see volume gains due to e-commerce and omni-channel distribution patterns.

“UPSers at this facility can sort and load more volume than before,” said Cardillo. “The facility can also process more packages destined for other UPS distribution locations. This enhances throughput in the broader UPS network.”

Ken Harms, UPS president of the Mid-South District, added in a statement that these facility upgrades will help to provide UPS with the latest technology and additional capacity to process both ground and air express volume growing from e-commerce business shippers located in Memphis, coupled with consumer demand that is driving online retail sales.

About the Author

Jeff Berman headshot
Jeff Berman
Group News Editor

Jeff Berman is Group News Editor for Logistics Management, Modern Materials Handling, and Supply Chain Management Review. Jeff works and lives in Cape Elizabeth, Maine, where he covers all aspects of the supply chain, logistics, freight transportation, and materials handling sectors on a daily basis. .(JavaScript must be enabled to view this email address).


Subscribe to Logistics Management magazine

Subscribe today. It's FREE!
Get timely insider information that you can use to better manage your
entire logistics operation.
Start your FREE subscription today!

Recent Entries

Largely feeling the effects of the recently resolved West Coast ports labor disruption, railroad and intermodal volumes in February were down annually, according to data released by the Association of American Railroads (AAR) this week.

The year 2015 marks a major milestone for the industry, MHI is celebrating its 70th anniversary at ProMat 2015, held March 23-26, 2015.

While the Federal Motor Carrier Safety Administration has made strides in regards to better oversight of motor carriers through its Compliance, Safety, Accountability (CSA) and chameleon vetting safety programs, there is room for improvement for it to improve its oversight to better target high-risk carriers. That was the thesis of a report released this week by the United States General Accountability Office

With an eye on capitalizing on future trade and commerce growth in South Asia, express delivery and logistics services provider DHL today rolled out its plans to build an $85 million EUR ($93 million USD) DHL Express South Asia Hub, which will be a 24-hour express hub facility within the Changi Airfreight Center at the Singapore Changi Airport.

While the Federal Railroad Administration (FRA) has long stated its goal of having Positive Train Control (PTC) technology installed on 40 percent of its network by December 31, 2015, railroad industry stakeholders have repeatedly stated that reaching that deadline would be a stretch. It now appears that the railroad sector has some members of Congress sharing the same line of thought with legislation rolled out this week that pledges to extend the PTC deadline to 2020.

Article Topics

News · UPS · E-commerce · All topics

Comments

Post a comment
Commenting is not available in this channel entry.


© Copyright 2015 Peerless Media LLC, a division of EH Publishing, Inc • 111 Speen Street, Ste 200, Framingham, MA 01701 USA