Amazon Plans to Invest $1.49 Billion in Air Cargo Hub
SEATTLE, WA - Amazon has kept up a consistent string of innovative growth, and is pinpointing the realms of freight as its newest focal point for strategy. The online retailer announced that it will invest in a worldwide cargo hub in Kentucky, to further its growing transportation needs.
Amazon’s Hebron, Kentucky-based hub will help support its growing fleet of planes servicing Prime Air. USA Today reported that this move is a $1.49 billion investment into the company’s freight endeavors, and will create over 2,700 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. We feel strongly that with these qualities as a place to do business, our investments will support Amazon and customers well into the future,” said Dave Clark, Amazon Senior Vice President of Worldwide Operations, according to a press release. “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.”
Amazon chose Cincinnati/Northern Kentucky International Airport over the Wilmington Air Park in Central Ohio, but has not yet stated when it will break ground. The online e-commerce company has entered into a 50-year lease with the airport.
As part of the investment, Amazon will build several facilities on around 920 acres of land. This will include a 3 million-sq.-ft. sorting facility, a 350,000-sq.-ft. loading dock, and enough ramp space to house 100 cargo jets. The company currently leases 40 planes to service Amazon Prime members.
"This is a once-in-a-lifetime deal," Airport CEO Candace McGraw said, according to USA Today. "It's truly transformational.”
The Wall Street Journal reported that the hub will help Amazon increase its own responsibilities for shipping, as its current global capacities are straining its shipping partners. This news comes on the heels of a recent foray into sea freight shipping, as well.
Will these shipping-focused strategies move Amazon and its products further into consumer homes? AndNowUKnow will report as the news unfolds.