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FedEx to open distribution center in Concepción

InvestChile - July,14,2023

The company will expand its capacity in the Biobío Region to cover demand in southern Chile.

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FedEx Express fine-tunes its strategy for the Chilean market. The company, a subsidiary of the U.S.-based company, plans to activate expanded capacity at its Concepción distribution center (Biobío Region) as it fortifies infrastructure in response to the growing demand for shipments in southern Chile.

FedEx Express will expand its surface area in Concepción (currently 1,500 square meters) with a new 4,500-square-meter warehouse, giving it a maximum processing capacity of 2,000 to 2,500 packages per hour. The move is in addition to last year’s doubling of its distribution center in Pudahuel (Metropolitan Region) to 14,000 square meters and a processing capacity of up to 6,000 packages per hour.

Humberto Lira, FedEx Express Vice President of Operations for South America, noted that the expansion is consistent with the company’s plans to fortify its position in the Chilean shipping market. The U.S. company currently has over 30 distribution centers and 800 vehicles nationwide.

“We have strengthened our package handling capacity in Santiago, Valparaíso and soon, in Concepción. These three cities account for approximately 60% of e-commerce volume. To lead in this market, we need to strengthen our infrastructure, not just expand our fleet, as we aim to become the number one player in the B2C (direct-to-consumer) business in the coming years,” he said.

Lira emphasized that FedEx Express had acquired 50 electric vehicles to boost operations and make progress on the company’s path toward electromobility. The company’s plan calls for new electric fleet purchases by 2030.

Source: El Mercurio.

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Topics: Foreign Investment



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