FedEx will not go ahead with plans to build $259M Greenwood hub
GREENWOOD, Ind. (WISH) — Pittsburgh-headquartered FedEx Ground Package System is no longer considering building a hub in Greenwood, the company announced on Saturday night.Last October, Greenwood officials approved a resolution with tax incentives for the company to built a $259 million hub in the Johnson County city.
The hub was expected to service much of central and southern Indiana, Ohio and central Kentucky, according to FedEx’s presentation to the commission last year. Construction was expected to begin in the spring or summer, with operations scheduled to begin in June 2020.
The company said they longer needed the hub, based on its projected operational needs, a release said on Saturday.
“We’re certainly disappointed in the decision but appreciate FedEx’s transparency and collaboration throughout the evaluation process. The silver lining is that the initial decision by FedEx to explore such a large investment in Greenwood has led to interest from a number of other high-profile companies. Pitney Bowes will soon open a large facility nearby, and we anticipate several others will express interest as news spreads that this desirable property is now available,” the city of Greenwood said in a statement.
FedEx Ground released the following statement:
“FedEx Ground is constantly evaluating the capacity needs of its network. Automation and technological enhancements we have made to our network over the last decade have enabled us to continue to increase the utilization of our existing capacity while serving the growing needs of our customers.
Incentives offered by the City of Greenwood were generous and very much a positive for our initial consideration of that location, and we thank Greenwood for its partnership throughout this process. The Indianapolis area remains an important market for FedEx, both for our current operations and as we consider the future needs of our network.”