Contracts Awarded for Construction of $100 Million FedEx Distribution Hub Planned in Oregon

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Researched by Industrial Info Resources (Sugar Land, Texas)--Skanska USA Building Incorporated (Beaverton, Oregon) was selected to provide general construction services for a $100 million regional distribution hub to be built in Troutdale, Oregon, for FedEx Ground Package System Incorporated (Coraopolis, PA), a subsidiary of Federal Express Corporation (NYSE:FDX) (Memphis, Tennessee).

Plans are to open a northwest distribution hub with the intent of relocating and expanding the Swan Island North Portland facility by constructing a 425,000-square-foot distribution building on 77 acres at the Former Alcoa-Reynolds Metals Plant north of the Troutdale Airport. A second phase is also being planned at the site to expand the building to nearly 560,000 square feet. This new facility is part of a $1.8 billion national expansion plan by FedEx Ground to build nine regional ground package distribution hubs. Approximately 765 jobs will be created initially. Construction is set to begin in late November or early December with completion slated for the summer of 2009.

The Port of Portland, owner and operator of the Troutdale Airport, has been in the process of buying the 700 acres from Alcoa Incorporated (Pittsburgh, Pennsylvania) the world's No. 1 aluminum manufacturer, which took over the Reynolds Metal plant in 2000. In August 1999, Alcoa entered into a merged agreement with the Reynolds Metal Company, the world's third largest aluminum producer, and Alcoa acquired all outstanding shares of Reynolds in a tax-free agreement. Transfer of ownership from Alcoa to the Port of Portland is anticipated before year's end or until the Environmental Protection Agency issues a decision on the environmental cleanup. FedEx Ground will only be one of several tenants at the site.

Pickering Incorporated (Memphis, Tennessee) provided architectural and engineering services for the new hub.

FedEx Ground Package System Incorporated (Coraopolis, Pennsylvania) provides ground deliveries of small packages throughout the United States and Canada and offers services in Alaska, Hawaii and Puerto Rico through alliances. The company handles more than 3 million shipments per day from more than 30 hubs.

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