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

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Cargo Force, which provides terminal handling services for U.S. Postal Service parcels moving by air via FedEx Express (NYSE: FDX), said Friday it is opening 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 across the four sites, the company said. The contract also renews service in Jacksonville, Florida, and Omaha, Nebraska.

Last year, Cargo Force also won a large Postal Service contract to process Priority Mail in Milwaukee, Pittsburgh, Boston, and Tampa, Florida. It now operates 14 airport facilities around the country to support the Postal Service.

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

Miami-based Cargo Force processes about 300 million pounds of Priority Mail, according to its website.

Local mail plants send Priority mail to Cargo Force warehouses, where it is scanned and sorted by destination, packed into containers, and tendered to FedEx. After FedEx flies the shipment to the destination city, Cargo Force retrieves and unpacks the containers, sorts and scans the mail by ZIP code, and delivers it to local mail centers. Postal drivers then carry the individual parcels to homes and businesses.

The Seattle-Tacoma facility opened Oct. 4 and the other locations will open Nov. 1, the company said.

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

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