LOUISVILLE, Ky. (Aug. 25, 2016) – During a groundbreaking event today, Gov. Matt Bevin and Louisville Mayor Greg Fischer welcomed the 300 full and part-time jobs global shipping giant United Parcel Service Inc. (UPS) plans to create with an approximately $310 million expansion of its Centennial Ground hub in Louisville.
“This expansion by UPS, a global leader in logistics and shipping, will further improve the speed and service that the company delivers to its customers," said Gov. Bevin. "This investment by UPS also reaffirms Kentucky’s leading role among states as a hub for logistics and distribution excellence.”
“The UPS hubs in Louisville have attracted dozens of businesses to the region that rely on fast and accurate shipping. The additional capacity and hundreds of new jobs created by this expansion at the Centennial Ground hub will help UPS play a powerful role in Kentucky’s economic development future. On behalf of our administration and the people of Kentucky, I am thankful to UPS for its continued commitment to the Commonwealth.”
The more than 580,000-square-foot expansion will nearly triple the size of the UPS Centennial Ground Hub facility to 838,000 square feet in response to increased e-commerce and traditional retail package volume.
The project will roughly double the company’s current sorting capacity to 85,000 packages per hour and add additional sorting automation equipment, including automated conveyor systems, six-sided address label decode tunnels and label applicators.
The hub’s proximity to the UPS Worldport at the Louisville International Airport allows UPS to provide end-of-runway express service to its customers in Louisville and surrounding areas.
Construction will take place in three phases and is expected to continue through 2020. The project will not affect pickup and delivery operations.
“We are excited to have construction underway,” said Lou Rivieccio, president of UPS’ Ohio Valley District. “This project is a win for everyone involved. It will benefit our customers, generate jobs, and enhance economic development in Louisville and the surrounding region. Centennial offers UPS customers the advantage of being at the center of the world’s largest package delivery company. It is one of UPS’ most important facilities.”
Mayor Fischer recognized the company for its economic impact on the community.
“UPS is one of the major economic engines in the city and state,” he said. “We are pleased that the company is continuing to invest to ensure outstanding service for shippers large and small.”
UPS, founded in 1907, is headquartered in Atlanta. In 1975, UPS became the first private shipping company to serve every address in the lower 48 states. Initial construction on the Louisville Centennial Hub began in 2007, the company’s 100th anniversary, and it opened in 2008. Louisville is a vital point in the UPS express network with approximately 2 million packages moving through the city each day to destinations in more than 220 countries and territories around the world.
Kentucky’s central location and robust infrastructure make it ideal for companies like UPS’ ground and air shipping operations. The Commonwealth has 19 interstates and major highways, five commercial airports and dozens of regional airports across the state. A target industry, the distribution and logistics business sector nearly 55,000 people at more than 420 facilities across the state.
Sen. Perry Clark, of Louisville, pointed to the strong relationship between UPS and Louisville.
“Louisville and Jefferson County welcome this growth and the boost to our economy that will follow,” he said. “We stand ready with a skilled workforce to fill the 300 jobs generated from this investment. UPS has always been a good corporate partner and we look forward to continuing that relationship in the future.”
Rep. Jeff Donohue, of Louisville, thanked the company for its commitment to the community.
“Today’s groundbreaking speaks volumes about UPS’ commitment to our community and the faith the company has in its second-to-none workforce,” Rep. Donohue said. “I want to thank its leaders for investing so much more here and creating these additional jobs. I am proud to work with our state and local leaders in helping to make projects like this possible, and I look forward to doing even more in the future to improve our economy.”
The Kentucky Economic Development Finance Authority approved UPS in October 2015 for up to $1.75 million in tax incentives through the Kentucky Enterprise Initiative Act (KEIA). KEIA allows approved companies to recoup Kentucky sales and use tax on construction costs, building fixtures, equipment used in research and development and electronic processing.
UPS can also receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, eligible companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. Last year, the Kentucky Skills Network trained more than 84,000 employees from more than 5,600 Kentucky companies.
For more information on UPS, visit www.UPS.com.
A detailed community profile for Louisville can be viewed at www.bit.ly/LouisvilleJeffersonCo.
The Kentucky Cabinet for Economic Development is the primary state agency responsible for encouraging new jobs and investment in the state. New capital investment announced in Kentucky in 2015 totaled a state record $5.1 billion, spurring more than 16,000 projected new jobs. Information on available industrial properties, workforce development assistance, incentive programs, community profiles, small business development and other economic development resources is available at www.ThinkKentucky.com.