Amazon Airport: Firm to build giant $1.5bn cargo hub in Kentucky
- Amazon is opening air hub to compete with FedEx and UPS
- Facility will sit on 900 acres of land in Kentucky and create some 2,000 jobs
- It will also house 40 Amazon Prime Air planes - 16 are currently in service
Amazon is set to open a $1.49 billion cargo air hub to take on FedEx and UPS.
The e-commerce giant has secured 900 acres of land in Kentucky that will one day be home to 40 Amazon Prime Air planes – 16 of which are currently in service.
The hub will let Amazon handle more in-house shipping, allowing them to deliver packages faster and cut costs.
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Amazon is set to open a $1.49 billion cargo air hub to take on FedEx and UPS. The e-commerce giant has secured 900 acres of land in Kentucky that will one day house 40 Amazon Prime Air planes – 16 of which are currently in service. Picture taken at a Boeing hangar in Seattle, WA
Amazon has been an active member of the business community in Kentucky for nearly 20 years, employing more than 10,000 people in full-time jobs across 11 fulfillment center locations.
And the air hub at Cincinnati/Northern Kentucky Airport (CVG) in Hebron is expected to create more than 2,000 new jobs.
'As we considered places for the long-term home for our air hub operations, Hebron quickly rose to the top of the list with a large, skilled workforce, centralized location with great connectivity to our nearby fulfillment locations, and an excellent quality of living for employees,' said Dave Clark, Amazon Senior Vice President of Worldwide Operations.
'We feel strongly that with these qualities as a place to do business, our investments will support Amazon and customers well into the future.'
'We couldn't be more excited to add 2,000-plus Amazon employees to join the more than 10,000 who work with us today across our robust operations in Kentucky.'
The northern Kentucky location - not far from UPS's major hub - puts Amazon's aircraft in shooting distance of top cities.
It also lets Amazon's trucks reach 11 fulfillment centers in state. And a large operation of Deutsche Post DHL there lets Amazon transfer packages easily abroad, said Brian Clancy, managing director of advisory firm Logistics Capital & Strategy LLC.
The air hub at Cincinnati/Northern Kentucky Airport (CVG) in Hebron is expected to create more than 2,000 new jobs. Pictured is a Boeing 767 with an Amazon.com 'Prime Air' emblem flying over Lake Washington in Aug. 2016
'Amazon's Prime Air hub promises to revolutionize the fulfillment industry worldwide, and Kentucky is excited to partner with them as they embark on this disruptive, transformative and exciting venture,' said Gov. Bevin.
'Kentucky's ideal location, proven workforce and an already extensive shipping and logistics industry have been the backbone of our relationship with Amazon for nearly 20 years.'
'This new project will pay dividends to both the company and our state, and we are truly grateful for the jobs and economic impact it will bring to the commonwealth.'
As part of the investment, Amazon anticipates it will spend nearly $462 million on building and improvements over an unspecified number of years, according to a report by the Kentucky Economic Development Finance Authority.
The hub will let Amazon handle more in-house shipping, allowing them to ship packages faster and cut costs. Pictured is one of the leased Boeing 767 planes parked in a Boeing hanger in Seattle, WA
The authority's board tentatively approved $40 million in tax incentives for Amazon over ten years if it meets hiring commitments, with average wages including benefits targeted at $26 per hour, the report said.
So far, Amazon has loaded its aircraft with big but lightweight boxes, according to data reviewed by Reuters and interviews with airport officials around the United States.
Amazon's new site compares with about 1,220 acres UPS has in Louisville. FedEx has more than 900 in its Memphis hub, a 2010 airport plan showed.
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