UPS spending $200M to build major new package hub outside Toronto

MISSISSAUGA, Ont.—United Parcel Service Inc. is committing $200 million to build a new operations hub for small packages in Caledon, Ont.

UPS said construction on the 850,000 sq. ft. facility northwest of Toronto is already underway, though it refused to reveal the general contractor on the project.

The U.S.-based logistics firm said the new site will be fully automated and use advanced scanning and sortation technologies that integrate data-driven tools to increase efficiency. The hub is expected to sort up to 35,000 packages per hour and will host a fleet of more than 200 package cars.

The $200 million investment in Caledon is part of a wider $500 million UPS commitment to its Canadian operations. The company is also currently working on expanding its Montreal logistics — a job it says is nearly complete.

The new Toronto-area facility is scheduled to open in late 2020.