UPS Capital Expenditures increases including a 1.2 Million Square Foot Regional Hub In Atlanta

ROBO MOD

I'm a Robot
Staff member
$400 Million Investment Includes Advanced Automation and Provides Expanded Capacity to Better Serve UPS Customers

UPS (NYSE: UPS) today announced plans to invest in excess of $400 million to build a new regional package sorting hub on the west side of Atlanta. The new hub will be the third largest processing facility in the company’s U.S. network.

Construction will begin this month on a 341 acre industrial site in Fulton County with support from Georgia, Atlanta and Fulton County economic development teams. The project is expected to be fully operational by the end of 2018 with 1,250 new employee positions operating on multiple sorting shifts.

“UPS has proudly made its global headquarters in Atlanta for more than two decades,” said David Abney, UPS chairman and CEO. “This strategic capital investment will feature state-of-the-art technology. When combined with the strong transportation connections and talented labor pool that Atlanta provides, UPS is building flexibility to meet the growing needs of our customers and our business in Georgia, and around the world.”

The new facility will feature the latest UPS sorting, processing and data capture technology. UPS compiles significant volumes of shipment status data as it moves packages through its transportation network. Using this data, the company provides industry-leading package tracking, the capability to seamlessly change delivery location to meet customer requirements and the flexibility to modify shipment routing in response to weather or other unplanned occurrences.

In the advanced 1.2 million square foot Atlanta facility, more than 100,000 packages per hour will be carried over 15 miles of conveyors using highly automated processing equipment. Six-sided laser label decode tunnels will rapidly capture package information from address labels. High-speed UPS Smart Label® applicators will place labels on packages at a rate of 3 per second, providing UPS personnel instructions for proper routing and loading on local delivery vehicles.

In addition to sorting and processing, the hub will include a delivery vehicle center capable of dispatching more than 280 trucks for area delivery and pickup, and a UPS Customer Center for retail service. The facility will also operate onsite compressed natural gas fueling for delivery vehicles and large tractor-trailer rigs to service the local UPS alternative fuel vehicles fleet. The company is working with Majestic Realty Company to develop the Fulton County site to UPS specifications.

The new southeast region hub project is part of a multi-year UPS investment plan to modernize and expand the company’s global network, including several new facilities and acquisition of new cargo aircraft.

UPS employs more than 14,000 people across Georgia in package delivery operations, ground freight, aircraft operations, data center management and contract logistics. Product and technology development, global transportation network planning and other corporate staffs are based in metro Atlanta.
 

wkmac

Well-Known Member
Atlanta gets all the good stuff---------I wonder why?

If you actually saw the buildings we have here, you might not say that. We've been way short capacity for years and are paying a price for it as we speak. The fact we've done as well as we have is testimony to the hard work and effort of Atlanta and surrounding Georgia UPSers. To them I salute you!

This mega hub has been known about for months, about a year actually, but the location was not. One rumor had the location in Adairsville Ga. and another location was in Forest Park Ga. Was told these rumors were allowed as decoys and that makes sense. Guessing the location almost became a game and "No One" was guessing the west side of Atlanta although it makes sense. I was told about a month ago that the actual location would be somewhere on the west side of Atlanta (no specific location) and that they would close the Atlanta Hub which we now know is true.

The good thing about being around 35 years is knowing people and knowing people who know things that are in positions to know such things. The other part in knowing things is not coming to places like here and blabbing everything you know.

And hold on Atlanta, this ain't over as there is more to come!
;)
 

rod

Retired 22 years
Its good Atlanta gets a new building. Meanwhile my old center has been patched together after two major fires and has 2 stupid portable loading docks that are basically unheated. I hear its real comfortable working there on a 20 below zero morning. But all is not lost---the managers office and the room with all the computer crap in it are kept at a comfortable 75 degrees year around. Its by far the worst looking building in the industrial park. They own another vacant lot next door and could easily expand but the word is that they won't do it because the city insists they have a paved parking lot and they are to cheap to go that route.
 

scratch

Least Best Moderator
Staff member
I heard a rumor this will be built off of South Fulton Parkway, which is near I-285/I-85. The below article says it will be near the Charlie Brown Airport, which is a couple of miles down Fulton Industrial from the original Atlanta Hub that I started at. UPS is currently spending $8M improving my small Hub in Forest Park.

New UPS Logistics Hub Bringing 1,250 Jobs to Southwest Atlanta
 

wkmac

Well-Known Member
I heard a rumor this will be built off of South Fulton Parkway, which is near I-285/I-85. The below article says it will be near the Charlie Brown Airport, which is a couple of miles down Fulton Industrial from the original Atlanta Hub that I started at. UPS is currently spending $8M improving my small Hub in Forest Park.

New UPS Logistics Hub Bringing 1,250 Jobs to Southwest Atlanta

Scratch,

Once this mega hub is up and running, watch for P'dale to get "modernized" or another term used for automation. Jacksonville and Whites Creek are in those processes now and completion is 2019'/2020' or there about. Also watch Charlotte area and I'll just leave it at that.

As for the metro Atlanta area, watch the northside, specifically the I-75 corridor over the next couple of years if not sooner to see if anything happens there.

Having started in Atlanta Hub also, this new Mega Hub will be a good thing for those still there. At some point in the next 3 to 5 years, the present Atlanta Hub won't be there which seems weird but then life goes on.
 

Catatonic

Nine Lives
How many years have they gone without? Then all of a sudden, all these places absolutely need upgrading?

Besides, they aren't running the cars they have now.
This is for the inside employees to reduce the stretching needed to do the job.
Reduced over the shoulder lifting and no lowering to less than 18 inches.

This is not in the contract so the drivers and the teamsters can't stop UPS from taking care of the part-timers this time.
.
.
.
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Catatonic

Nine Lives
I just find this interesting, and wondering if they will use the "Our profits were down last year" argument, during contract talks.
Capital Expenditures do not reduce taxable profits .. they are not Operating Expenses.
CapEx comes from loans/bonds and cash on hand.
CapEx is typically reduced over a 30+ year depreciation schedule.
 

upschuck

Well-Known Member
Capital Expenditures do not reduce taxable profits .. they are not Operating Expenses.
CapEx comes from loans/bonds and cash on hand.
CapEx is typically reduced over a 30+ year depreciation schedule.
I guess you don't understand what I am getting at, but ok.
 

FrigidFTSup

Resident Suit
Its good Atlanta gets a new building. Meanwhile my old center has been patched together after two major fires and has 2 stupid portable loading docks that are basically unheated. I hear its real comfortable working there on a 20 below zero morning. But all is not lost---the managers office and the room with all the computer crap in it are kept at a comfortable 75 degrees year around. Its by far the worst looking building in the industrial park. They own another vacant lot next door and could easily expand but the word is that they won't do it because the city insists they have a paved parking lot and they are to cheap to go that route.
We went 5 years with an open air platform. Imagine having people loading out there during a Minnesota winter
 

Turdferguson

Just a turd
We went 5 years with an open air platform. Imagine having people loading out there during a Minnesota winter
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