FedEx inaugurates Novara road hub: 'a benchmark for logistics'

PRESS RELEASE

Operational from January 2023, as a result of a €70 million investment, the site is a gateway between Italy and major markets across Europe

Milan, May 11, 2023— FedEx Express, a subsidiary of FedEx Corp (NYSE: FDX) and the world's largest express transportation company, yesterday inaugurated its new hub in Novara, a logistics benchmark in Italy and Europe. The site is located at the center of the European road network and plays a key role in Italy's national network, adding greater reliability and continuous improvement in on-time performance.

Operational from January 2023, as a result of a €70 million investment, the Novara Hub constitutes a gateway between Italy and major markets throughout Europe, taking advantage of connections to the country's major road and air centers: it connects businesses in one of the areas with the highest economic and industrial density to the most important trade routes, as well as to the entire Mediterranean basin. Together with the nearby Malpensa Airport, where FedEx operates its main Italian air gateway, Novara Road Hub stands as a logistics center of excellence in the area.

The site is part of a vision to enhance local and global connections: it is the largest and one of the most technologically advanced FedEx International Road hubs in Europe. It is located on a 210,000 sq. m. site, with the hub occupying 32,000 sq. m., divided into two main buildings for separate processing of freight and parcels, equipped with 240 truck docks. The parcel sorter is the most advanced of its kind, with a total conveyor belt length of 3.73 km and an initial capacity to process 21,600 packages and 8,000 small parcels and documents per hour. The freight building is equipped to handle 4,000 shipments of heavy or bulky goods per hour.

"For us, this site is much more than a hub: it is a reference point for the territory, open to all our stakeholders. We have built it because we want to support our country, continue to invest in Italy and for Italy, and support Italian businesses in promoting the excellence of Made in Italy around the world," said Stefania Pezzetti, VP Ground Operations, Southern Europe. "Novara Road Hub expands the capacity and expertise of our network and aspires to become a benchmark in our industry for its advanced operating model and holistic approach to the communities and the territory, fueling innovation and economic growth."

The Novara opening is also benefiting the local area and communities, with more than 450 job opportunities generated in the area through an innovative recruitment approach in which diversity and inclusion are key elements. Novara is a testament to the company's commitment to a diverse workforce: 42 ethnic groups, gender balance (to date 33% of the workforce is female with a target of at least 40%), with a range of different generations represented. In terms of well-being, the new structure and operating model will help create a streamlined, safer environment for all employees while enhancing the workforce experience.

From an environmental sustainability perspective, the facility is certified as LEED Gold, the most widely used and recognized green building rating system in the world. The certification specifications guided the finalization of the center with a 360-degree vision, implementing solutions that, among other areas, look at:

The building has also been evaluated through a carbon footprint analysis since its construction, which will quantify the greenhouse gas (GHG) emissions generated throughout its life cycle. The analysis considers the total emissions from all life phases of the building, as recognized by the global warming potential (GWP). Evaluated through the Life Cycle Assessment (LCA) methodology (ISO 14040: 2006 and ISO 14044: 2018), this analysis was conducted to identify the right strategies toward carbon neutrality of the hub's operations by 2040, in line with Priority Earth goals.

The same principles that guided during the construction of the site led to the identification of a partnership with an organization that leads the way in its vision of responsibility to the environment and the local community. FedEx Express therefore decided to partner with Slow Food Italy-a nonprofit association committed to protecting food biodiversity, through a $200,000 grant.

FedEx Express will help fund two key Slow Food projects driven by entrepreneurial spirit and building networks with more opportunities for people: the launch of 10 new FedEx-sponsored Slow Food Presidia and 2 new Earth Markets to further promote and preserve food biodiversity locally, throughout Italy. Some of the 10 new Slow Food Presidia will be geographically located in the Piedmont Region, near the new hub, and the others in different locations around the country.

One of the two new Earth Markets will be held near Novara, further engaging the community near the hub and strengthening the social fabric of the area through the interaction between rural and urban environments.

"Our collaborations with the social, economic and academic fabric in the area are born with the idea of continuity, as we have always done. These projects will have a long reach, with new opportunities for local implementation as the hub is effectively contributing to the territory, a process that started from the moment of construction," Pezzetti concluded.