Amazon plans $1.5b air cargo hub in Kentucky

The e-commerce giant will build a new centralized airfreight hub at the Cincinnati/Northern Kentucky Airport (CVG) in Hebron, Ky. to support its growing fleet of Prime Air cargo planes, the company said in a statement.    Online retailer Amazon.com Inc. unveiled plans this week to build a new air cargo hub at the Cincinnati/Northern Kentucky Airport (CVG) in Hebron, Ky.
   The e-commerce giant said in a statement the centralized airfreight hub will support its growing fleet of Amazon Prime planes and is expected to create more than 2,000 jobs. Media reports estimate the cost of the development and construction of the new hub at around $1.5 billion.
   Amazon in August debuted the first aircraft in its new air transportation network emblazoned with the Amazon logo and the “Prime Air” name. The Boeing 767-300, operated by all-cargo carrier Atlas Air, is one of 16 dedicated aircraft currently in service for the company.
   Amazon Fulfillment Services plans to increase its fleet to 40 aircraft over the next few years under wet lease agreements with Atlas and Air Transport Services Group, which owns carrier ABX Air.
   The Prime Air network is designed to support one and two-day package delivery, especially for Prime members who pay an annual subscription for free two-day shipping. The company in recent years has looked to supplement the capacity of express carriers like UPS and FedEx with its own logistics services, causing some analysts to speculate that Amazon may be looking to get into the shipping and logistics game itself.
   The new Prime Air hub at CVG will support Amazon’s dedicated fleet of Prime Air cargo planes by loading, unloading and sorting packages. The company said it plans to offer job opportunities at any Amazon site across the U.S. to those involved in the package sortation that currently takes place at its facility in Wilmington Air Park, about 50 miles north of CVG in Ohio.
   Wilmington was also the previous home of DHL’s North American hub, but the parcel carrier and third-party logistics provider moved its package sorting and cargo operations to CVG in 2009.
   “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. “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.”