FedEx Ground puts new distribution center near U.S. 281 in Edinburg
EDINBURG — A large FedEx Ground distribution center that recently opened in the city’s North Industrial Park will provide the shipping company quick access to U.S. 281, shaving hours off delivery times and saving fuel costs for tractor-trailers.
The newly constructed 107,000-square-foot warehouse located in the industrial park just off U.S. 281 and Farm-to-Market Road 2812 is more than four times the size of the company’s old Rio Grande Valley distribution center near the Weslaco airport, FedEx Ground officials said at an opening ceremony Wednesday. But it was the close proximity to the Valley’s major route north — and the company’s large customer base in the McAllen metro area — that sold the company on the Edinburg location.
“With the larger building, as we take on new customers, we’ll be able to grow and add people as the customer volume picks up,” said Roy Pittman, the managing director for FedEx Ground’s Gulf Coast region. “All of that played a big factor into (locating in Edinburg) but easy access in and out for our (trucks) is really what drives where we put our stations.”
FedEx Ground moved its Valley distribution center to the Edinburg site in mid-September from the warehouse at 1904 Joe Stephens Ave. in Weslaco. The company employs about 120 people locally in administration, sales and its distribution center, but it expects to add about 50 to 60 new employees with the Edinburg expansion.
FedEx Ground also plans to recruit University of Texas-Pan American students who can take advantage to the company’s tuition assistance program.
The distribution center’s estimated cost is about $8 million on a 13-acre plot of land in the North Industrial Park, according to a news release from the real estate corporation that signed a long-term lease with the company. FedEx Ground is the second major tenant in the 108-acre park that Edinburg opened in 2003 using $2 million in state economic development funding.
Brazilian denim manufacturer Santana Textiles is in the midst of construction for the first phase of its first North American plant, which is located just down the street from the FedEx Ground distribution center.
With FedEx Ground’s shipments traveling primarily through hubs in Dallas-Fort Worth and San Antonio, the location just off U.S. 281 will cut the company’s delivery times and fuel costs, Pittman said. Overnight boxes flowing through San Antonio are arriving at the Edinburg location about 45 minutes earlier than before, allowing them to reach households and businesses faster.
FedEx Ground averages about 12,000 inbound packages for its Valley service area, and another 10,000 outbound packages heading to points north, said Eddie Garza-Gongora, the senior manager for the company’s Valley operations. The largest volume of shipments is delivered to commercial clients in the McAllen metro area with growing business from Mexican companies shipping to U.S. customers.
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Jared Janes covers Hidalgo County government, Edinburg and legislative issues for The Monitor. He can be reached at (956) 683-4424.
