FedEx Mulls $110M Distribution Center In North Carolina

October 5, 2008 10:36 a.m. EST

Kernersville, NC (AHN) - FedEx Corp., America's largest freight forwarder and whose performance is used as a benchmark for the U.S. economy, plans to construct a $110 million distribution hub in Kernersville, North Carolina.

Despite the ongoing financial crisis, FedEx Ground Packaging System, Inc., a subsidiary of FedEx spearheading the project, announced the purchase of 125 acres of land at the Triad Business Park, which will be the future site of a regional shipping center that could generate 1,000 jobs.

FedEx, however, is putting the hub's development on hold pending resolution of state-level zoning issues. The freight forwarder rarely buys land it does not develop, according to a FedEx official, but it is looking at alternative sites in Greenville, South Carolina and Murfreesboro, Tennessee.

The future hub, a few miles from Piedmont Triad International Airport, is seen to boost the local economy with the creation of 300 jobs for the town. The facility could employ close to 1,000 people at full capacity.

But the company plans to transfer employees from other FedEx Ground sites. The new ground hub is expected to start operations in 2010.

FedEx is also building a $300 million East Coast air freight hub at Piedmont airport.

Local governments have given FedEx incentives such as a $1 million grant from Guilford County commissioners for the creation of 470 jobs in the next six years.