FedEx recently released its “2018 Annual report” and filed several permit applications announcing plans to modernize and expand its FedEx Express hubs at Memphis (MEM) and Indianapolis (IND) international airports.
The company reported expected capital expenditures for 2019 at approximately US$5.6 billion, to include FedEx Express investments in aircraft fleet modernization and the Memphis and Indianapolis hub modernization and expansion programs. Capital expenditures at FedEx Ground are expected to decline in 2019, due to the completion of two major hub projects boosting the integrator’s capacity yin the Northeast U.S. Additionally, TNT Express integration is forecasted to be $180 million.
Of the permits the integrator has recently filed, one for FedEx Express plans construction work, worth USD$15 million, according to Memphis Commercial Appeal. Other permits include one calling for “interior renovation of a three-level office facility, worth $3.8 million, along with a smaller-scale permit for break room renovation, worth $50,000.”
“FedEx recently entered Amendment Ten of their composite lease – a term of 30 years with two 10-year options, renewed in 2007 – which means FedEx can build an apron contiguous to their current lease lands,” said Memphis Airport Authority (MAA) president and chief executive officer, Scott Brockman, in an interview with Air Cargo World. “They are going to build seven parking aprons, which will allow them to grow either day or night-time operations.”
According to Brockman, MEM also recently relinquished two staff facilities to FedEx that were in close proximity to the integrator’s international flight arrival area, which FedEx will use to maintain its existing hub and aprons.
These investments and changes come as little surprise, given that FedEx announced a $1 billion upgrade to technology and automation capabilities at its Indianapolis hub at the start of 2018, as well as plans to upgrade to its WorldHub in Memphis, in March.