FedEx Express Transforms Domestic Operations with New, Innovative Distribution Center in Mexico
MIAMI, April 9, 2014 — With an investment of $48 million, FedEx Express, a subsidiary of FedEx Corp. (NYSE: FDX) and the world's largest express transportation company, has opened the FedEx Hub Nacional México in the State of Mexico. This 800-employee distribution center, the centerpiece of domestic operations, officially opened April 8 after being inaugurated in a ceremony presided over by Eruviel Ávila, governor of the State of Mexico, Mike Ducker, chief operating officer and president of International Markets of FedEx Express, Juan N. Cento, regional president of FedEx Express Latin America and the Caribbean and Jorge Torres, president of FedEx Express Mexico.
The new hub will enable reductions in transit times, improved pick-ups, and more efficient deliveries throughout the country. The most advanced FedEx Express distribution center in Latin America, FedEx Hub Nacional México has a processing capacity of up to 13.5 thousand packages per hour—the fastest ever for a FedEx facility in Latin America. Other first-of-its-kind features and capabilities include the first sorting control room in Latin America allowing team members to view and quickly act on any operational issue, one of the largest call centers in the world, and a sustainable design that reaffirms the FedEx commitment to its EarthSmart® environmental responsibility goals.
The new center furthers the growth strategy for FedEx Express in Mexico, as it expands the range of domestic and international solutions offered to all companies at competitive prices. While it is designed to enhance domestic distribution, FedEx Hub Nacional México will also speed the delivery of packages sent to Mexico from the U.S. and other Latin American and Caribbean (LAC) countries and regions. In addition, its implementation of innovative logistics technologies and operational practices makes the state-of-the-art facility a blueprint for future FedEx distribution centers.
“The opening of FedEx Hub Nacional México is a major milestone for our company and the businesses we support throughout Mexico and the LAC region. It helps achieve our goal of developing equipment and infrastructure to support business growth domestically, regionally and internationally,” said Juan N. Cento, regional president of FedEx Express, Latin America and the Caribbean,
FedEx developed every aspect of the facility with the idea of making shipments to any part of Mexico easier. Thanks to its location, its 70,000 square meters of space, its 53 platforms for loading and unloading, the implementation of the latest technology, and the support of nearly 800 employees, the FedEx Hub Nacional México will enable operations to improve transit times and extend pick-up schedules throughout the country.
The construction of the new Hub is a major commitment from FedEx to boost the economies of steadily growing regions such as the state of Guanajuato (which contributes 3.9 percent to the National GDP)1, the state of Queretaro (which contributes 2 percent to the National GDP)2 and the State of Mexico, which, according to the National Institute of Statistics and Geography (INEGI), generates almost 10 percent of national GDP, among others.
This investment from FedEx Express aligns with the federal government’s National Infrastructure Program, which aims to make Mexico a focal point for the sector, and infuses more vitality into domestic trade. The program seeks to promote regional development across the Republic through logistics connectivity to improve the country´s productivity.3
According to the World Economic Forum, Mexico ranks 68 among 144 countries in the Infrastructure Competitiveness Index 2012-2013. In addition, the World Bank ranks Mexico 47 out of 155 countries in the Logistics Performance Index 2012.4 These figures indicate challenges that Mexico faces to fully develop its commercial role both domestically and internationally.
As of late 2013, Mexican businesses have more access points for their shipments through FedEx, thanks to more than 800 retail locations and a website portal that allows them to open accounts and request pick-ups. Domestic shipments made through these touch points will pass through the FedEx Hub Nacional México before arriving at their final destination and customers will be able, as always, to track their packages through the FedEx webpage or mobile apps.
Among the technical features of the complex are:
- 70,000 square meters of land area, of which 17,740 correspond to the operational area and 7,000 to administrative areas divided into two levels
- Automated sorting system, unique in the region and capable of moving 13,500 packages per hour
- The first FedEx sort control room in Latin America
- Electricity savings through low-energy consumption equipment
- Water savings by a hydraulic low-power consumption design
- LED technology
- Solar hydraulic heating systems
- One of the largest training areas for FedEx Express in Mexico