UPS Inc. said today it will spend more than $400 million to build a 1.2-million-square-foot regional package sorting hub in Atlanta.

When fully operational at the end of 2018, the facility, located on the city's west side, will be the third largest in UPS' U.S. network behind Louisville, Ky., and Chicago.

Construction will begin this month on a 341-acre industrial site in Fulton County, Ga., UPS said. About 1,250 sortation jobs will be created when the hub is fully operational, the Atlanta-based company said. UPS said it will be able to process more than 100,000 packages per hour in the hub.

The hub will include a delivery vehicle center that can dispatch more than 280 trucks for area delivery and pickup, UPS said. The company will also have compressed natural gas (CNG) fueling capabilities to service the local UPS alternative fuel vehicles fleet, the company said.