FedEx Sorting Facility Burnishes Status of Anchorage Int’l as a Global Cargo Hub

The approximately 42,000-square-foot facility further enhances the Alaska airport’s stature as one of the most popular cargo hubs anywhere, along with the likes of Hong Kong International Airport, Memphis International Airport and Shanghai Pudong International.

“We’re number four in the world for cargo operations,” says ANC Deputy Director Trudy Wassel. “Cargo is very important to our airport. It generates about 70% of our annual revenue.”

Last year (2023), cargo operations generated slightly more than $106 million in revenue for the state-owned airport. The 3.4 million tons of goods it handled was slightly below its record throughput of 3.6 million tons, set in 2021.

With three runways longer than 10,600 feet, ANC handled 51,352 cargo landings in 2023 (along with 5.7 million passengers). FedEx alone averages about 450 landings a month, Wassel notes.

Brandon Tolbert, vice president of Properties and Facilities for FedEx, says the new unit load device cross-dock facility at ANC allows the company to transfer containers more efficiently in a covered, controlled environment rather than exposed to weather such as rain, sleet and snow.

When the project was first announced in 2022, company officials highlighted its importance then and in the future. “Right now cargo is king, and we expect that trend to continue for some time,” said Richard Smith, president of FedEx, Americas at the time. “Alaska and, in particular, Anchorage are only growing in importance over time.”

Its new sorting facility, located on the north side of ANC, was completed toward the end of 2023. And Smith’s reference to more growth is already bearing out. FedEx is currently building another facility on the west side of ANC: a 98,000-square-foot cargo distribution center. It will focus exclusively on cargo headed for destinations within Alaska.

“About 82% of communities in Alaska are accessible only by air,” Wassel explains. “Aviation is part of the lifestyle here. Some small carriers might even deliver pizzas to a community by air.”

Location and Infrastructure

Why is ANC such a crucial transit hub for delivery giants like FedEx and United Parcel Service (UPS)?

“It’s all about location, location, location,” says Wassel.

Because Anchorage is about halfway between Asia and the United States, it’s a strategic place to refuel. Aircraft can take off with half as much fuel for their full trip and then make a pit stop at ANC. This allows them to carry more cargo without exceeding their total weight limits.

“We’re 9½ hours from 90% of the industrialized world,” Wassel details. “Cargo carriers can take more cargo and less fuel by transiting through Anchorage on their way to Chicago, Cincinnati, Miami and even Mexico and some South American countries.”

Overall, ANC serves 44 cargo destinations.

In addition to being a tactical refueling location that allows carriers to maximize their payloads, it’s also a popular place for carriers to change flight crews. Every day, the airport handles about 100 wide-body airplanes, each with a crew of two to four people.

“Cargo crews rent about 300 hotel rooms a night here in Anchorage,” says Wassel, pointing out a secondary advantage for the local economy.

But there’s more to ANC than its serendipitous location. Cargo aircraft could just as easily fly over it and land at airports in Vancouver or Seattle. Cargo-specific infrastructure at ANC, however, encourages carriers to stop in Anchorage. Wassel cites operational amenities like pull-through aircraft parking, fast and efficient refueling via hydrants (as opposed to refueling trucks) and reasonably priced fuel as key competitive advantages.

“We offer a great product here,” she summarizes. “Our infrastructure is set up so an aircraft can come off a taxiway, park, refuel, pull forward and get back on a taxiway and be back on their way in maybe one hour and 20 minutes.”

Furthermore, about 1,500 of the airport’s 4,612 acres are still available for more commercial development like the new FedEx sorting center.

“We’re ‘land sexy’ here,” Wassel laughs.

Why Not Brick and Mortar?

The new cargo sorting facility at ANC was designed, manufactured and installed by Legacy Building Solutions, a global firm that specializes in tension fabric structures—so named because industrial-strength fabric is attached to a steel frame and “tensioned” to create walls and a roof.

“We build large clear-span spaces with no framing members in the center,” explains Sara Davis, a building and project design consultant for the company’s Transportation Division. “They’re designed for anyone who wants to maximize the space in an entire building by eliminating interior supports.”

Applications range from airplane hangars to warehouses to sports arenas.

FedEx found plenty of advantages to the alternate building style. “The fabric structure not only met our specific operational needs, but also provided for quicker design and construction times, allowing us to bring the new facility online much faster,” says Tolbert.

Davis notes that tension fabric buildings also cost significantly less to build than traditional brick-and-mortar buildings. She describes Legacy’s options as temporary structures that are engineered to be permanent, but can be taken down if necessary.

“In airport applications, most tenants don’t actually own the land,” she relates. “So when they make improvements on the land they lease, they want to be sure they can protect their investment—take it with them when the lease expires.”

Start to finish, the FedEx structure at ANC was added in six months—three for preparatory sitework and three for facility construction.

Roger Hickel Contracting, of Anchorage, performed the sitework, which included laying water and sewer lines. Its crews also poured roughly 3,000 yards of concrete to create 8-inch-thick slabs for the building. Concrete footings around the slabs are about 6 feet thick. That work was finished by the end of August to allow proper curing.

“We were in a race to beat the weather,” recalls Scott Dunlap, vice president of the firm. “The weather [in Alaska] doesn’t cooperate with concrete in October, so we needed to be done before that and on time. Then, right behind us was Legacy erecting the building.”

Crews from Legacy constructed a steel frame with I-beams. The walls and roof are made of two layers of polyvinyl chloride (PVC) flame-retardant fabric with insulation sandwiched between them. In total, the new facility popped up in just three months.

Davis stresses that the fabric, which Legacy manufactures in-house, can handle extreme environmental stress, including high winds, earthquakes and 50 pounds of snow per square foot. The facility at ANC also includes 3-foot-deep eaves to shed snow away from the building.

“With its high winds, extreme snowfalls and seismic activity, Alaska offers one of the harshest environmental loads ever,” Davis comments. “Mother Nature continues to show off, so the last thing we wanted was to make the news for the wrong reason.”

For FedEx, durable structures support the company’s emphasis on customer service. “The new facility enables us to ensure the optimal path for each package and increase efficiencies while providing the same reliable service and commitments to our customers,” says Tolbert. “We anticipate an increase in volume through the facility, which, in turn, could serve to benefit the airport with increased flights and more revenue through landing fees, fuel purchases and jobs.”

More Growth Expected

Wassel also expects cargo operations at ANC to continue growing in the years ahead—from FedEx and other carriers, too. She notes that shippers are increasingly turning to air transport as geopolitical conflicts in the Middle East make it difficult for ocean-going cargo ships to use the Suez Canal, and drought conditions hamper passage through the Panama Canal.

“The average worldwide demand for air cargo capacity between Asia and North America and Mexico is increasing at about 11% annually,” she adds. “Manufacturers need to get their products to market, so they’re turning to air, which is more expensive but can provide guaranteed delivery times.”

Wassel cites the ever-increasing volume of e-commerce as another key factor fueling the air cargo sector.

Where it all will stop is unclear. But one thing is certain: ANC is well positioned for further growth. And projects like the FedEx facilities only burnish the airport’s image and reputation as a critical transit hub.

The airport logged more than 51,350 cargo landings last year—about 450 per month from FedEx alone.

“It’s called the ducks theory, where one duck lands somewhere and other ducks want to see why,” Wassel says. “When people see FedEx investing here, it’s a good thing for the airport because it shows all the opportunities available here.

“Having FedEx decide to build here is a big prize.”

And what’s good for ANC is good for Anchorage. One in 10 jobs throughout the city are related to airport operations. In fact, ANC issues roughly 10,000 airport identification badges annually to ground handlers, concessionaires, line personnel and others who work at the airport.

“We put a lot of money into the economy and provide families with really good livings,” Wassel says. “I think that Anchorage is in a good position to continue to grow by catering to logistics firms and other businesses.

“We’re not done growing yet.”