FedEx Corp. will invest more than $1 billion to modernize its Memphis, Tenn.-based headquarters.
Construction is expected to begin next year. The project will include a sort facility and state of the art sorting systems, and a bulk truckload building. It also will have an area to improve handling of oversize shipments, which continue to increase because of the growth in e-commerce.
Officials say the improvements are scheduled to be completed by 2025.
Tennessee Gov. Bill Haslam and FedEx officials said the expansion is being entirely paid for by FedEx, without any government incentives.
“As the Memphis area’s largest employer, and a major economic driver across the state, this investment reflects FedEx’s continued commitment to Tennessee and will benefit current employees and the future workforce for years to come,” Haslam said.
Some 47% of FedEx’s worldwide business, and 69% of all domestic shipping, is done at its Memphis headquarters. It operates 163 aircraft gates at Memphis International Airport. The company operates 12 hubs around the world.
The company employs an estimated 30,000 people in the greater Memphis area. More are expected to be hired as the expansion takes place, the company said, but did not provide a number.
FedEx ranks No. 2 on the Transport Topics Top 100 list of the largest for-hire carriers in North America.