Cargo Force Wins $ 100 Million Postal Service Contract for Priority Mail

Cargo Force, which provides terminal processing services for U.S. Postal Service packages transported by air via FedEx Express (NYSE: FDX), announced Friday the opening of four new facilities to support express mail service after winning a seven-year, $ 100 million contract.

The new facilities in Seattle, San Diego, Detroit and Orlando, Florida cover 173,000 square feet in total and will create 255 jobs at the four sites, the company said. The contract also renews service in Jacksonville, Florida, and Omaha, Nebraska.

Last year, Cargo Force also won a major postal service contract to handle priority mail to Milwaukee, Pittsburgh, Boston and Tampa, Florida. It now operates 14 airport facilities across the country to support the postal service.

Cargo Force is owned by the investment companies Audax Private Equity and Greenbrier Equity Group. Sister company Alliance Ground International manages cargo operations for airlines at airports across the country and provides other services, such as de-icing aircraft and staffing counters in passenger terminals.

Miami-based Cargo Force processes around 300 million pounds of priority mail, according to its website.

Local mail factories send priority mail to Cargo Force warehouses, where it is scanned and sorted by destination, packaged in containers, and delivered to FedEx. After FedEx transports the shipment to the destination city, Cargo Force picks up and unpacks the containers, sorts and scans mail by zip code, and delivers it to local mail centers. Postal drivers then transport individual packages to homes and businesses.

The Seattle-Tacoma facility opened on October 4 and the remaining sites will open on November 1, the company said.

Click here for more FreightWaves / American Shipper stories by Eric Kulisch.

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