FedEx Corp. has unveiled plans for an enormous upgrade of its global parcel hub in Tennessee, submitting a preliminary proposal to local authorities for a five-story, 1.6 million square foot small package sort center at Memphis International Airport designed to keep up with e-commerce demand.
The new e-commerce project, code-named “Hercules,” would be built just south of FedEx’s (NYSE: FDX) new automated sorting facility that opened in October 2024, with the two buildings connected by an elevated bridge, according to a preliminary site plan application submitted in mid-January by project engineer GFT to the city of Memphis and Shelby County.
The development will replace a nearby existing structure and include new utilities and a new employee parking lot. The new facility will accommodate a sophisticated automated sort system, which is currently being designed under a separate contract with FedEx, according to the documents.
GTF said a full building design will be submitted in June.
A FedEx spokesman declined to provide any additional information about the Memphis hub project. Memphis handles more cargo tonnage than any airport in the nation because of the FedEx operation, which can reach 95% of the world within 72 hours by air.
“The Memphis World Hub is the heart of the FedEx global network, and this dynamic, new sort facility is equipped with the latest data-driven technology that enables us to strengthen our hub operations,” said Lisa Lisson, president of Air Operations, in a news release about the opening of the Secondary 25 building in 2024. “Modernizing the Memphis World Hub is a key step in our network transformation to help our customers compete and win with the world’s most flexible, efficient, and smartest logistics network.”
The Secondary 25 facility spans 1.3 million square feet across four levels, includes 11 miles of conveyor belts and can sort 56,000 packages per hour.
The facility alone can process more than half the volume from the primary night sort. Automation reduces sorting time for transfers to outbound aircraft and trucks, improves reliability and allows packages to be culled in one building during weather events. Six-sided scanners allow for packages to be scanned on all sides to capture size and barcode information for accurate sorting. The terminal is also equipped with dimensional weight systems and 1,000 cameras to monitor the flow of packages and ensure they don’t hit a jam.
The new sort building also includes a command center that is three times larger than the original and controls package traffic throughout the hub.
Overall, the FedEx World Hub covers 940 acres with 171 aircraft gates and 84 miles of conveyor belt. It can process 484,000 packages per hour.
News of FedEx’s next infrastructure investment in Memphis was previously reported locally by the Commercial Appeal and WMC-5.
Click here for more FreightWaves/American Shipper stories by Eric Kulisch.
Write to Eric Kulisch at ekulisch@freightwaves.com.
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