Project Update typography
Interior of FedEx Sorting Facility Project.

Photo provided by The Walsh Group

Sorting Out the Details
Major FedEx expansion takes flight at Ted Stevens Anchorage International Airport
By Terri Marshall
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edEx is upgrading its infrastructure at Ted Stevens Anchorage International Airport (ANC), investing $200 million in an ongoing modernization project. As part of the project, FedEx is expanding its existing domestic operations center to increase capacity both domestically and internationally. It’s also building a new, 180,000-square-foot sorting facility and additional ramp parking for all feeder aircraft. FedEx plans to open the facility in September 2026.

The sweeping expansion marks a pivotal moment for both the airport and Alaska’s growing role in global logistics. Anchorage serves as a critical hub for FedEx’s global network due to its strategic location and operational capabilities. It also serves as a key gateway for trans-Pacific trade. Earlier this year, FedEx launched a new, non-stop flight from Anchorage to Singapore four times a week, deepening US-Asia connectivity.

“The Anchorage hub is the touchpoint for all packages that come to Alaska and plays multiple roles while remaining central to both local and international deliveries,” says Dale Shaw, FedEx Express Alaska managing director of operations. “It can sort up to 60,000 international packages and up to 20,000 domestic packages daily.”

Beyond these operational advantages, Anchorage’s location—just nine and a half hours from 90 percent of the world’s advanced economies—positions ANC as a cornerstone for global trade and a vital part of FedEx’s strategy to deliver the “Purple Promise” (“to make every FedEx experience outstanding”) worldwide.

“The Anchorage hub is the touchpoint for all packages that come to Alaska and plays multiple roles while remaining central to both local and international deliveries.”
–Dale Shaw, Managing Director of Operations, FedEx Express Alaska

Subcontractors working on FedEx expansion project include the following Associated General Contractors of Alaska companies:

  • Alaska Concrete Sawing, Inc.
  • Alcan Electric & Engineering
  • ASRC Energy Services
  • BrandSafway Services
  • Commercial Contractors, Inc.
  • Chugach Electric Association
  • Crouse Environmental Compliance LLC
  • Dama Industrial
  • ENSTAR
  • Excel Construction
  • Finishing Edge Concrete Construction
  • Johnson Controls
  • Rain Proof Roofing
  • Rent-a-Can Toilet Co. Inc.
  • Shoreside Petroleum
  • Square H Construction
  • Summit Windows & Doors, Inc.
  • United Rentals
Wide shot of the FedEx Domestic Sorting facility under construction, showing large metal-clad buildings, active cranes, and orange lift equipment on a gravel site, framed by green marshland.
Construction progresses on the new FedEx Domestic Sorting facility.

Photo provided by Ted Stevens Anchorage International Airport

Innovative Ideas Keep the Project On Track
Seattle-based Walsh Construction, through its parent company The Walsh Group, is serving as the general contractor for the project, and several Associated General Contractors (AGC) of Alaska member companies are part of the project team.

“Roger Hickel Contracting [RHC] is a ‘super sub’ on the project, providing all civil and foundation work, also known as ‘anchor bolts down,’” says Scott Dunlap, vice president of RHC. “We completed all interior foundation and slab-on-grade work this fall, per the original schedule. That work being completed on time allowed the project to reach the ‘dried in’ stage by late October of this year, allowing interior work to proceed throughout this winter.”

The expansion hasn’t been without difficulties, and innovative measures were necessary to keep the project on track.

“This site was particularly challenging, as it was constructed not only on a peat bog but also involved navigating environmental concerns related to soil at the site. As a result, none of the in-situ material could be removed from the site, so the traditional methodology of excavating the peat below the building and filling the footprint with gravel was not possible,” explains Dunlap. “A Geopier approach using Rammed Aggregate Piers was used instead. This methodology allowed this challenging site to be developed economically and in conformance with environmental considerations.”

As one of the few remaining large tracts of land at the airport, the project site had not been developed before due to the high costs associated with construction, including both peat and environmental contamination.

“RHC is very proud to state that we worked with the client, CRW Engineers, and regulators to develop a unique approach to this site that allowed the project to move forward while meeting budget and environmental requirements,” Dunlap says.

Numerous AGC member companies are also working on the expansion in various capacities. “We supplied around 3,000 yards of concrete for the building so far, and we’ll still need to supply concrete for the hard stands on the outside of the building,” says Dave Johnson, sales manager of Anchorage Sand & Gravel.

Side view of the FedEx facility under construction, featuring blue exterior paneling and a bright orange section. Two white utility trucks are parked on a gravel lot in front of the building.
Construction trucks are parked in front of the new FedEx facility as workers build the structure.

Photo provided by Ted Stevens Anchorage International Airport

Increased Connectivity, Here and Everywhere
The FedEx expansion project has generated significant employment and contracting opportunities for Alaskans.

“At the height of construction, hundreds of on-site workers were employed, the majority from local firms and union trades,” says Angie Spear, director of the Alaska International Airport System (AIAS). “In addition to skilled labor positions, the project has supported engineering, design, and logistics jobs that draw on expertise from across Alaska. Once operational, the expanded facility will sustain long-term jobs in aircraft maintenance, cargo handling, and ground support services, reinforcing Anchorage’s reputation as a year-round aviation employment hub.”

The economic and operational benefits ripple outward beyond Anchorage.

“With approximately 1,500 employees in Alaska, FedEx is one of the largest employers in the state. The ongoing facility renovation brings both economic and operational benefits to the airport and the local community,” explains Shaw. “Operationally, expanded ramp parking will provide additional spots for feeder aircraft, improving service to remote communities, and ensuring timely delivery of essential goods like medical supplies, pharmaceuticals, and infrastructure equipment.”

Currently, FedEx operates four daily feeder routes to Fairbanks, Kenai, Kodiak, and Homer. Strategically, expanding international capacity requires building out the domestic operations center, which further stimulates the local economy.

“Combined with Anchorage’s role as a critical logistics hub, this investment reinforces FedEx’s commitment to supporting both regional connectivity and global trade,” says Shaw.

Anchorage already ranks among the top four cargo airports in the world by volume, and this project further solidifies its position. The expansion positions FedEx for future growth in global air cargo by boosting capacity and efficiency at a strategic cargo hub.

“Anchorage’s location makes it a vital link for US–Asia trade,” says Shaw. “The modernization featuring a new sorting facility and expanded ramp parking will enable FedEx to manage rising global demand, support international routes like Anchorage–Singapore, and serve the unique Alaska landscape and economy. These upgrades enhance FedEx’s ability to connect remote Alaska communities and reinforce leadership in global air cargo.”

Terri Marshall is a freelance writer who has written for numerous outlets including Alaska Business, AARP.org, and Girl Camper. Her topics range from business to travel to car reviews. Alaska road trips are among her favorite experiences.