RPS to Expand Delivery Network

RPS Inc. announced plans to spend $500 million to expand its package delivery network by 50% over the next three years.

The company will build three new hubs to support metropolitan markets in New York, Chicago and Los Angeles and will relocate and expand more than 50 local terminals.

"Demand for our services is exceptionally strong," said Daniel J. Sullivan, president of RPS. "We plan to meet that demand head-on by substantially increasing our capacity."

A 195,000-square-foot hub in Rialto, Calif., and a 153,000-square-foot hub in Champaign, Ill., will open in mid-1999. A third new hub to open in the summer of 2000 in Woodbridge, N.J., will be the company’s largest at 429,000 square feet and capable of processing 30,000 packages an hour.

By the end of 1999, the company said it will expand existing hubs in Toledo, Ohio; Denver and Sacramento, Calif.

Targeted for expansion are pickup and delivery hubs in Albany, N.Y.; Long Island, N.Y.; Baltimore; Beltsville, Md.; Norfolk, Va.; Pittsburgh; Cincinnati; Detroit; Carol Stream, Ill.; Dallas and Burbank, Calif.

RPS specializes in business-to-business package delivery and ranks second behind United Parcel Service. The company was launched in 1985 and generated revenue of $1.7 billion in 1998.

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