‘Just The Beginning’: Gary Breaks Ground on $60 Million FedEx Distribution Center

Less than six months after announcing its arrival during his State of the City address, Mayor Eddie Melton christened what will become Gary’s new FedEx distribution center.

Thursday’s groundbreaking ceremony at 1 Buffington Harbor, which took place even as crews were at work on the 317,000-square foot facility, was attended by officials from every level of local government, including most of the Gary Common Council, as well as U.S. Rep. Frank Mrvan, and Gov. Mike Braun.

Melton, jokingly dubbed “Mayor Momentum” by Braun, during the ceremony, framed Gary’s future as a story of resilience and renewal, and pointed to collaboration as the key to sustaining momentum.

“Public-private partnerships, collaborating with our state, local, and other entities, is how Gary is growing and will grow further,” Melton said.

“This is just the beginning. Our entire staff at the city of Gary, we’re just getting started,” he said. “This is going to be the greater Gary momentum that everyone’s going to talk about. Gary, Indiana, will be the greatest comeback story.”

FedEx is set to invest about $60 million to build the center, which is expected to create roughly 600 jobs. It will be located on 78 acres at 6200 Industrial Highway, near the Gary/Chicago International Airport. The center will be capable of sorting about 15,000 parcels per hour once it opens, currently projected for April 2027. 

As part of the deal, FedEx will lease the property from developers Transport Properties and Scannell Properties, with commitments that at least 20% of the jobs go to Gary residents, 20% of construction contracts go to minority-owned businesses, and 5% to women-owned firms. The project’s proximity to Interstate 90 and U.S. 12 is expected to enhance logistics efficiency, while nearby infrastructure improvements, including the Buffington Drive extension, will improve truck access and reduce freight delays.

Braun, once a member of the Indiana House who worked briefly with then-state Senator Melton, recalled conversations between the two about Gary’s potential, pledging to enlist the resources of the state to see that potential realized.

“The region, in my opinion, gets overlooked because we got a place called Indianapolis, which generally gets all the attention. Most folks don’t realize [Northwest Indiana is] the second-largest population hub in our state,” Braun said. 

“The fact that you’re doing this as a community. You’re pulling yourself up by your own bootstraps, and you’re being entrepreneurial, and you’re doing most of the heavy lifting yourself. That’s going to inspire a lot of other people to invest here. It’s going to give a lot of confidence in our state government to help to make sure it’s a comeback. As long as I’m your governor, I’m going to be putting extra effort and special attention to it.”

Mrvan described the project as a catalyst for Gary’s revival, promising jobs, a stronger tax base, safer neighborhoods, and better-funded schools.

“What does this project mean for the city of Gary? It means more income … so our neighborhoods are going to be safer. We’re going to be able to demolish more buildings to be able to bring in new buildings. Our communities will be safer. We’re going to be able to have schools that have greater investment,” Mrvan said.

Common Council member Dwayne Halliburton, whose 2nd District will be home to the facility, said FedEx’s choice was a vote of confidence in the city.

“I’m excited about what FedEx is going to do here, and we thank FedEx for choosing Gary — and more importantly, we thank FedEx for being part of this great comeback story,” he said.