FedEx Ground said Friday it’s building a distribution center at Hillwood’s AllianceTexas development in north Fort Worth that will employ about 375 workers.
The facility, with more than 300,000 square feet of space, will be located on World Wide Drive, off Heritage Parkway, near FedEx’s Southwest Regional Sort Hub. FedEx is one of Alliance Airport’s largest users.
The distribution center is expected to open in August 2015, the company said. A permit filing places construction costs at $20.5 million.
FedEx said the center will primarily serve the north Fort Worth area. FedEx Ground currently has six facilities in the Fort Worth area and employs more than 2,800 people, it said. Two smaller facilities will close after the new, larger distribution center opens, said Jesse Bull, a spokesman in FedEx Ground’s Pittsburgh-area headquarters.
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It’s expected that the new facility will boost daily package volume capacity and enhance FedEx’s delivery speed, in most cases by one day or more, the company said. FedEx already processes about 100,000 packages a day through its Alliance hub, which opened in 1997.
“The site was chosen because of its ease of access to major highways, proximity to customers’ distribution centers and a strong local community workforce for recruiting employees,” FedEx said in a statement.
Since 2005, FedEx has opened 11 hubs featuring advanced material-handling systems and expanded or relocated more than 500 local facilities.
FedEx has about 600,000 square feet of space at Alliance, where it employs more than 800 workers. Its operations there go on around the clock, every day of the year. FedEx has about 650 flights a month at Alliance Airport.
At the end of October, FedEx said it was forecasting a record holiday season, and projected it will move more than 290 million shipments between Black Friday and Christmas Eve, an 8.8 percent increase from a year ago.
The company has increased capacity in the past five years by making $2.5 billion in capital expenditures. The company said it is now spending $1.2 billion on FedEx Ground to increase capacity and improve automation in 70 major expansion projects, including Alliance.