FedEx building new distribution centre

Peter
Peter Kovessy
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Ottawa’s second-largest courier company is constructing a new 47,000-square-foot distribution centre on the outskirts of Kanata, a company spokesperson says.

(Image provided)

FedEx Ground’s Allison Houser said in an e-mail that the new facility at 995 Moodie Dr., near the Fallowfield Road / Highway 416 interchange, will replace an existing nearby facility and is part of a network expansion aimed at increasing the company’s package volume capacity, as well as increasing its speed and service capabilities.

Municipal construction permit records show Warlyn Construction Ltd. received two permits related to the project from the city in November: one for 995 Moodie Dr., the other for 985 Moodie Dr. Both list an estimated project value of $6 million.

Ms. Houser said all existing employees would be transferred to the new station when it opens in July and that FedEx “will add to the workforce as necessary to support increased demand for service in the area.”

Last year, FedEx told OBJ it employed 150 Ottawa-area workers in 2012, making it the city’s second-largest courier company behind Purolator.

On its website, FedEx Ground says it is North America's second-largest ground carrier for business-to-business small-package delivery and operates through independent contractors.

In December, Memphis, Tenn.-based FedEx Corp. posted earnings of $438 million (all figures U.S.), or $1.39 per share for the quarter that ended in November, compared with $497 million, or $1.57 per share, a year earlier. Superstorm Sandy shaved 11 cents per share off of earnings in this year's quarter, as shipping volumes fell and costs rose.

Revenue rose to $11.1 billion from $10.6 billion a year ago, as the company scaled back its operation to better match demand and some of its raised rates.

Wall Street expected $1.41 per share in the recent quarter on revenue of $10.84 billion, according to FactSet.

Growth in the company's freight and ground operations boosted results, but FedEx reported “persistent weakness” in its core express network. Operating income in that segment fell 33 per cent. FedEx and its larger rival UPS Inc. have seen consumers and businesses opt for slower shipping options to cut costs. As a result, FedEx is offering buyouts and shedding aircraft and other assets to reduce its costs and adjust to the new normal.

Earlier in December, FedEx said it will offer some employees up to two years pay to leave, starting next year. The voluntary program is part of an effort to cut annual costs by $1.7 billion within three years.

-With a report by The Associated Press

Organizations: FedEx Ground, Warlyn Construction, UPS Inc. The Associated Press

Geographic location: Fallowfield Road, Ottawa, North America U.S.

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Recent comments

  • Brian Cowper
    January 08, 2013 - 15:41

    Outskirts of Kanata?

    • Tim
      January 11, 2013 - 13:46

      Yes! Around Moodie and Fallowfield.

    • Jamie
      January 15, 2013 - 10:25

      More like West Barrhaven