UPS is planning $750 million worth of investments at its Worldport global air hub at Louisville over the next 15 years, including a $220 million new aircraft hangar, in response to rising air express volumes.
The company claims to be winning a larger share of the expanding Next Day Air market in the USA while around the globe healthcare, ecommerce and small business customers are demanding faster delivery times.
In response, UPS Airlines is growing its air network, including its support structure at its home base in Louisville, Ky. Over the next 15 years, the company anticipates a series of construction projects around Worldport that could reach $750 million and create 1,000 jobs.
Most notably, UPS will build a new $220 million, 262,000 square-foot-hangar to accommodate line maintenance on its growing air fleet. The company is in the process of adding nearly 50 new, converted and leased 747-8s and 767s by 2022.
The new hangar will be large enough to simultaneously accommodate two 747-8F aircraft, the largest in the UPS Airlines fleet. Due to the configuration of property at SDF, the new hangar will be built on leased land at the northwest corner of the airport, on the opposite end of the property from the Worldport campus. Permitting and construction will begin in 2020, with the project scheduled for completion in 2022.
Other notable infrastructure projects include ramp and taxiway improvements, and renovated offices.
“These projects are part of UPS’s overall strategy to make investments in its global logistics network to enable continued growth in strategic markets,” said UPS Airlines President Brendan Canavan. “That includes an infrastructure that allows us to continue providing our customers with safe, reliable and on-time service.”
The new projects are expected to create a further 1,000 high-paying professional jobs, including for pilots, aircraft mechanics and support staff. This job expansion will allow UPS to pursue up to $40 million in tax incentives from the Kentucky Economic Development Finance Authority.
“UPS is a great corporate citizen and a significant economic driver for the commonwealth. We are thrilled to see the company’s continued growth here,” said Kentucky Governor Matt Bevin. “Businesses and consumers now operate at a faster pace than ever, and that is reflected in their shipping and distribution needs. It is the mark of a great company that UPS has quickly responded to customer demand by expanding its air cargo fleet here in Louisville.”
