FedEx Ground is building a large distribution center on the city’s northwest side that could deliver a jobs boost to the area. 

It’s part of a $1.2 billion plan the package-delivery giant announced last fall in an effort to meet the demands of online shopping’s booming growth. FedEx’s strategy includes more than 70 expansion projects aimed at strengthening the company’s ground-shipping capacity, and one of those will be in Ameriplex at Interstate 80/90 in South Bend.

FedEx Ground spokesman David Westrick said the property at 5115 Dylan Drive — northwest of where Brick Road crosses the St. Joseph Valley Parkway — was chosen because of its access to major highways, its proximity to customers and the availability of a strong workforce here.

"This announcement by FedEx, coupled with recent project announcements by other major global brands like Mercedes-Benz and GE are strong signals to the rest of the world that the South Bend area is open for business," said Jeff Rea, president and CEO of the St. Joseph County Chamber of Commerce. Rea added, "What each of those companies recognized is what our local companies have known for some time: our location is ideal to connect to a broad customer base; our workforce is well-prepared with the knowledge base to deliver on the very complex demands of our employers; Indiana has one of the more favorable tax and regulatory environments for businesses; and the cost of doing business here is competitive with other regions in the United States."

And FedEx isn’t the only company that recognizes the logistical advantages of South Bend’s northwest side. Several other distribution-related projects are planned for the Ameriplex development this year.

Rea added, "This announcement by FedEx also further solidifies our region's position as a strong location for warehouse, logistics and distribution businesses. Easy access to one of the busiest interstates in the country, two major trans-continental rail lines, an international airport with easy connections to some of the busiest cities in the world, an experienced workforce, and our proximity to the Chicago area market make this area ideal for projects like this one."

The 200,000-square-foot FedEx facility will cost between $15 million and $25 million, according to a state construction report. Workers from Niles-based Selge Construction have been preparing and grading the 30-acre site for the past several weeks.

Westrick said the distribution center is scheduled to be completed in May 2016 and will replace an existing facility that serves the South Bend area. He didn’t say how many people will work there, but new FedEx distribution centers announced in the past year in other parts of the United States are each expected to create 100 to 500 jobs.

”When the new facility opens, existing employee positions will move from the current station,” Westrick said, “and we will add to the overall area workforce as necessary to support increased demand for service.”

Westrick didn’t say which existing facility the new distribution center will replace, but one possible candidate is a FedEx Home Delivery operation that occupies nearly 75,000 square feet in a building across Dylan Drive from the construction site. That ground-sorting facility also makes daily deliveries.

FedEx Freight has a location on Ameritech Drive, about a half-mile from the Dylan Drive property, and FedEx Express has a terminal next to South Bend International Airport — but both of those subsidiaries are separate from FedEx Ground.

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Source: South Bend Tribune