FedEx’s president has announced a huge deal with the Ted Stevens Anchorage International Airport. The shipping and logistics company plans to invest a whopping $200 million to upgrade the facilities and expand its operations in Alaska. This investment comes on the heels of a record-breaking year for the Anchorage Airport.
Alaskan Shipping Needs Help
Anchorage International Airport reports that 3.6 million tons of cargo shipped through its facilities in the past year. They broke their own 2020 record by 14%. This makes them the 4th largest cargo hub on Earth. FedEx has declared confidence that Anchorage is growing, and it seems that an investment of this size will pay off.
Alaska has had a problem with shipping goods to its state. The remote area and harsh terrain make most traditional trucking options obsolete. Cargo shipping is slow, and it relies on outdated logistics practices. Some residents wait months for supplies, which slows down every industry in Alaska.
The Details of the Deal
Public records show that Fedex filed lease negations in 2019 with Anchorage International and additional filings made in 2021. FedEx and Ted Stevens Airport are still under negotiations. A $120 million project that includes improvements to the domestic operations center and warehouses, along with aircraft parking that covers 22 acres. The terms include a 30-year lease with options to extend to 50 years.
FedEx president, Richard Smith, needs to sign the lease by April 3rd, otherwise they will need to file a new lease agreement. Federal Express isn’t the only logistics and shipping company that is investing in Anchorage. There are a total of five shipping companies that have plans to expand in Anchorage. UPS has a $110 million project in development, and there is a total of an estimated $1 billion in investments from all five companies.
What Does This Mean for Alaska?
All these projects are awaiting PFAS soil remediation work. This environmental work ensures that the expansions are safely implemented. Even if there is a delay in the health and safety work, the $1 billion in investments won’t go away. Anchorage airport expects to see growth, and the demand for more shipments is high. FedEx and all the shipping companies plan to expand as soon as possible.
For Alaskans, this means they can expect their shipments sooner. Soon, companies will no longer have to wait months for parts, and soon, the state will see aggressive expansion. The economy will certainly benefit from this expansion, with more jobs expected across the board. Not only, in the shipping and airline industry.
Unfortunately, not everything can be shipped with FedEx. Airlines cannot ship large items like cars and trucks. If you need your vehicle transported, contact a reputable and reliable auto transport company. AlaskaAutoTransportation.com ships vehicles across the United States and can help you with all your vehicle transport needs.Â
