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Amazon Plans to Invest $1.49 Billion in Air Cargo Hub

Amazon Plans to Invest $1.49 Billion in Air Cargo Hub

Thursday, February 2nd, 2017

There seems to be no end to the innovative plans that Amazon apparently has in the works. The company has its eye set on freight in its latest endeavors, announcing that it plans to invest in a worldwide cargo hub to further support its transportation needs.

Based in Hebron, Kentucky, the location will support the burgeoning fleet of planes that service Prime Air. The company will invest $1.49 billion into the decision, reported USA Today, and create over 2,700 jobs.

Dave Clark, Senior Vice President of Worldwide Operations, Amazon“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.”

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.  

Candace S. McGraw, CEO, CVG Airport"This is a once-in-a-lifetime deal," Airport CEO Candace McGraw said, according to USA Today. "It's truly transformational.” 

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.

Amazon Prime Air

This move is congruent with the online retailer’s transportation-focused strategies. Amazon also recently took the first steps into sea freight shipping, as well.

Will more shipping-based announcements soon be in Amazon’s future? Deli Market News will report.