United Parcel Service’s planned $200 million regional hub in southeast Arlington will be its largest distribution center in North Texas and will serve as a key site for ground shipping throughout Texas, company officials say.
UPS will lease a nearly completed 1 million-square-foot warehouse in the Arlington Commerce Center industrial park off Interstate 20 and immediately begin adding another 100,000 square feet. It plans to be in full operation with 1,400 workers by late next year.
UPS on Tuesday officially confirmed the project, which was finalized last week when the Arlington City Council approved a tax incentive package for the company. UPS will invest $105 million in exchange for an 85 percent refund of assessed taxes on that property, saving the company $500,000 over the seven-year deal.
“The new Arlington building is part of the strategic investments UPS is making to dramatically improve the efficiency and connectedness of our hubs, package centers and transportation network,” said Craig Wiltz, president of UPS’s Red River District of Texas and Oklahoma, in a statement. “This project is part of our ongoing efforts to keep pace with rapidly evolving demands of e-commerce customers in Texas, across the U.S. and around the globe.”
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UPS employs 11,000 in Dallas-Fort Worth at operations that include eight package delivery facilities, an air gateway, ground freight and supply chain logistics centers. Among those is a major distribution operation in the AllianceTexas development in north Fort Worth, which opened in 2014, and its southwest regional air hub at DFW Airport, which opened in 1990.
The largest current distribution facility is a 350,000-square-foot center in Mesquite, said spokeswoman Kim Krebs. She said the Arlington hub will also be larger than a new package distribution facility announced last year in Round Rock (225,000 square feet) and an expansion of the San Antonio facility (to 331,000 square feet).
In addition to the Arlington site, UPS has announced three other new plants in the past six months -- a 1.2 million-square-foot hub outside Atlanta and facilities in Salt Lake City and Jacksonville, Fla., each more than 800,000 square feet.
UPS will install new technology at the Arlington plant that increases the accuracy of data collection, and state-of-the-art scanning and sorting equipment, including six-sided scanning cameras that capture data from all sides of a package simultaneously.
“That keeps the process moving fast and fluid with fewer processing errors,” Krebs said.
Krebs added that UPS is not consolidating any operations into the Arlington hub. “This is an addition,” she said. “It gives us more flexibility, so if one of the Dallas-area centers gets busy, it’s easy to move the volume to another Dallas-area facility to keep it flowing.”
In 2016, UPS had more than 25,000 employees in 470 facilities in Texas. People interested in working for UPS can learn more at upsjobs.com.