Bulldozers have started moving earth on UPS’s latest expansion project last month. The company’s $300 million investment will triple the size of the package facility to 838,000 square feet, and nearly double current sorting capacity to 85,000 packages per hour.

The project will also create a mix of 300 new full-time and part-time jobs.

The Centennial hub, constructed in 2007 during UPS’s 100th anniversary year, provides pickup and delivery operations for customers in Louisville and surrounding counties and serves as a transfer point for trailers moving to destinations beyond Kentucky. With its proximity to UPS Worldport air hub at Louisville International Airport, it also supports end-of-runway express service by allowing packages to be inserted into the Worldport air operations as late as 1:30 AM.

“Centennial offers UPS customers the advantage of being at the center of the world’s largest package delivery company,” said Lou Rivieccio, president of UPS’s Ohio Valley District. “It is one of UPS’s most important facilities.”

The expansion will take place in three phases and continue through 2020. In addition to increasing the building’s footprint, the project will modernize the hub’s conveyor technology, enhancing the flow of packages through the building, and increasing accuracy during sorting. The automated conveyors will move packages through the sorting process while capturing data used to route packages to the proper location for loading on outbound vehicles.

When the building first opened in May of 2008, sorting capacity was 40,000 packages per hour. The expansion of enhanced technology in the facility will increase capacity to 85,000 packages per hour, improving both reliability and quality of service provided to UPS customers.

“This expansion by UPS will strengthen Kentucky’s already significant distribution and logistics industry,” said Kentucky Governor Matt Bevin.

Six-sided decode tunnels will replace traditional scanning to capture package information from address labels. Label applicators will place smart labels on packages for local delivery, providing UPS loaders faster instruction of a package’s proper staging location in a UPS vehicle prior to transport. This will improve accuracy and package integrity, while minimizing time in transit for UPS customers.

“The UPS hubs in Louisville have attracted dozens of businesses to the region that rely on fast and accurate shipping,” said Bevin. “The additional capacity and hundreds of new jobs this expansion at the Centennial Ground Hub will create will help UPS play an even greater role in Kentucky’s economic development future.”