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Title: Customer Presentation


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  • Serves more than 220 countries
  • Approximately 140, 000 employees worldwide
  • Transports more than 3.3 million packages every
    business day
  • 670 aircraft and more than 42,000 vehicles
  • More than 2.5 million customers are connected
    with FedEx electronically through its web site or
    customer automation systems

3
FedEx Strengths
  • People
  • Hub and Spoke distribution system with integrated
    air/ground transportation
  • Unsurpassed physical and virtual network

4
Hub Strengths
  • State of the Art Sort Automation
  • Low Visibility Approach Capability at all Hubs
  • System Redundancy

5
FedEx Express Hub Network
  • FedEx Hubs are located in MEM, IND, AFW, EWR,
    OAK, ANC, CDG, SFS coming soon are
    Greensboro, NC Guangzhou, China

6
Indianapolis National HubPast, Present, and
Future
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Indianapolis Milestones
  • Opened October 1988
  • Six Expansion Projects Completed to date
  • Expansion Four was the largest completed in
    1998 at a Cost of Approximately 300 M
  • Phase VI was completed in 2000 and included a 12k
    piece per hour international operation
  • First Paperless Clearance Operation for US Customs

8
Original Hub Sort System - 1988
  • (33K pph conveyable box)

9
Growing to current day Operating as the 2nd
Largest Operation in Express
  • (75K pph conveyable box)

10
Indianapolis Provides Direct Service To 59
Cities in 32 States
11
Indianapolis Current Day
  • 80 Flights
  • 201 Truck Routes
  • Processing more than 390,000 boxes, 200,000
    documents, and 2,500 freight shipments per day
  • 75,000 piece per hour box system
  • 96,000 piece per hour document system

12
Day Sort Flights and Trucks
13
Night Sort Flights and Trucks
Global
Domestic
14
International Routings
  • The Indy Hub has international flights to Canada,
    Europe, and Asia.
  • Mexico and South America destination freight is
    routed through the Memphis Hub.
  • Connecting flights run from hub to hub.

15
Next Phase Phase VII
  • 140M investment
  • 600,000() Square foot expansion
  • 14 additional A/C gates from 62 to 76
  • 33 increase in system capacity
  • 1,000 additional employees
  • Ability to double existing international
    capacity from 12k pph to 24k pph

16
INDH Phase VII Site Expansion - 2008
Perimeter Road relocation required for further
gate expansion
17
INDH Phase VII Facility Expansion
Current MX/IP Offices, will be relocated to allow
IP cage and stage growth
Import System
Existing Secondary
Secondary Expansion
Existing Secondary
Existing Primary
Expansion
Import building shell Future 24 k PPH
Freight Building
1 New Input 8 Secondaries with 128 new Load
Positions 6K PPH Dangerous Goods Sort 99,000 PPH
New hub capacity
18
Facility Facts
  • Past Present 2008
  • Number of Daily Sorts 2 5
    5
  • Hub Employees 336 3,500
    4,500
  • Building Footprint (ft2) 0.6M
    1.9M 2.5M
  • Total on Airport Acreage 100
    263 517
  • Total Avg. Pkgs. Sorted Daily 550 K
  • Total FedEx Indy Investment 700 M

19
Sort Capabilities
  • Past Present 2008
  • Conveyable Box Sort 33 K 79 K 99 K
  • Document Sort 64 K 96 K 96 K
  • Intl Import Clearance 0 K 6 K 12 K
  • Freight Build-Up/ 10 LP 117 LP
    117 LP
  • Breakdown
  • Sort Capabilities 97 K 181 K
    207 K
  • (Box Document)

20
Aircraft Parking Capabilities
  • Past Present 2008
  • Wide Body Aircraft 6 39 53
  • Narrow Body Aircraft 22 23 23
  • Total Aircraft Gates 28 62 76

21
Benefits of Mid-Field Terminal
  • Ease in airport ingress / egress
  • Taxi time reduction on aircraft resulting in
    reduced fuel consumption and improved package
    availability
  • Contingency aircraft parking at the old terminal
  • The ability to continuously expand the
    Indianapolis based facility beyond 99k Phase VII.

22
Opportunities with the I70 Relocation Midfield
Terminal Projects
23
By Comparison Memphis Hub
  • Largest Hub in the FedEx system.
  • Has complete connectivity to 220 countries.

24
Memphis Hub Facts
  • 178 Aircraft Gates
  • 200 Miles of Belts
  • Max Sort Capacity
  • 160,000 Box Packages per hour expandable to 180k
    pph
  • 294,000 Documents per Hour

25
Memphis Flight and Trucks
  • Night
  • Domestic Flights 135
  • Direct International Flights 15
  • Trucks 60
  • Day
  • Domestic Flights 85
  • Direct International Flights 3
  • Trucks 115

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Memphis Domestic Routes
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Opportunities for continued Growth.
  • The development of a steadfast strategy through a
    collaborative effort led by local government,
    business leaders, and the Academic community.
  • Capitalize on Indianas greatest assets
  • Location.Location.Location Crossroads of
    America
  • Bio-Pharma
  • Agriculture
  • Alternative Energy
  • Transportation Capabilities
  • FedEx
  • Integrated Highway Network the most vast
    network in the U.S.
  • The design of key curriculums supportive of the
    stated strategy to eliminate brain drain.

28
Fast Facts.
  • Access the collapsing of space and time, and
    the expansion of information, is key in the
    interaction and exchange among people,
    businesses, and nations.
  • Access enables companies, both large and small,
    to consider the world their market.
  • Indiana is poised to become the countrys
    logistics center.
  • Manufacturers and Consumers, alike, are able to
    realize savings via streamlined global supply
    chains.
  • 80 of the population in Canada and the U.S. are
    within a days truck drive from Central Indiana,
    and
  • More than 60 of the major U.S. business markets
    can be connected within a one day truck run as
    well.

29
Critical Success Factors.
  • Commitment to and investment in marketing the
    Strategy
  • Embracing of globalization
  • Trans-border exportation focusing on what we
    have and who needs it (e.g. China where basic
    resources are becoming extinct).
  • Capitalizing on opportunities associated with raw
    imports.
  • Trade liberalization
  • Modernization of Regulatory Agencies (e.g. USCBP)

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Thank you
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