UPS Expands its Infrastructure at Kentucky Worldport Hub

Next Day Air volume is growing rapidly in the industry and UPS is winning a larger share of this expanding market. Further, healthcare, eCommerce, and small business customers are demanding faster delivery times around the globe.

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In response, UPS Airlines is growing its air network, including its support structure at its home base in Louisville, Kentucky.

Over the next 15 years, UPS anticipates a series of construction projects around Worldport that could reach $750 million and create 1,000 jobs.

“These projects are part of UPS’s overall strategy to make investments in its global logistics network to enable continued growth in strategic markets. That includes an infrastructure that allows us to continue providing our customers with safe, reliable and on-time service.”

UPS Airlines President Brendan Canavan

Most notably, UPS will build a new $220 million, 262,000 square-foot-hangar to accommodate line maintenance on its growing air fleet. The company is in the process of adding nearly 50 new, converted and leased 747-8s and 767s by 2022.

The new hangar will be large enough to simultaneously accommodate two 747-8F aircraft, the largest in the UPS Airlines fleet

Due to the configuration of property at SDF, the new hangar will be built on leased land at the northwest corner of the airport, on the opposite end of the property from the Worldport campus.

Permitting and construction will begin in 2020, with the project scheduled for completion in 2022.

Other Notable UPS Worldport Infrastructure Improvements

New jobs will reflect growth throughout the airline. Pilots, aircraft mechanics, and support staff will be among the 1,000 high-paying professional jobs the projects will create.

This job expansion will allow UPS to pursue up to $40 million in tax incentives from the Kentucky Economic Development Finance Authority.

“We are grateful for public sector support with these incentives,” said Canavan. “They are a win-win, allowing UPS to expand in Kentucky while increasing tax revenues and creating jobs in the city and throughout the state.”

“UPS is a great corporate citizen and a significant economic driver for the commonwealth. We are thrilled to see the company’s continued growth here. Businesses and consumers now operate at a faster pace than ever, and that is reflected in their shipping and distribution needs.”

Kentucky Governor Matt Bevin

The incentive program runs for 15 years and allows UPS the flexibility to pursue growth projects based on operational needs.