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February 6, 2018
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Amazon Midwest Prime Air grows

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Amazon Bluegrass

Airport Hub

The mammoth online retailer Amazon announced it will build a hub for close to $1.5 billion at the Cincinnati/Northern Kentucky International Airport (CVG) as an investment to serve the growing fleet of Prime Air cargo planes. Its new air cargo hub will help Amazon logistics by quickly getting and delivering goods from 11 nearby warehouses and distribute them across the US with its own fleet and contractor’s planes.

The e-commerce giant is currently preparing a huge air freight hub at CVG, with construction due to start in 2019, according to airport officials. Before the expansion, the project originally was going to involve 900 acres to handle up to 100 aircraft at once.

The hub is the latest move that Amazon is changing the supply chain that gets the millions of goods it sells on its website to consumers—a strategy that can reduce Amazon’s shipping costs, and reduce payments that often end up in the HYPERLINK “www.theatlas.com/charts/4yGOOfGOx” hands of traditional shipping companies, like FedEx and United Parcel Service. Amazon’s future airfreight hub, is about 400 miles northeast of FedEx’s Memphis (MEM) hub

The Kentucky Economic Development Finance Authority’s board has tentatively approved $40 million in tax incentives for Amazon over the next 10 years, on the condition that it meets local hiring commitments. It also has stipulated that average wages must be $26 per hour. Amazon is expected top employ 2700 new workers.

Amazon is currently searching for its second headquarters city in which to build a major office. The online giant said it could spend $5 billion, and hire as many as 50,000 employees, at the new campus over an anticipated 17 year build out. With this key development does this mean that either Cincinnati or Kentucky will be the winner of this big move? Although power house city such as Newark and NY are on the short list one never knows how Jeff Bezos thinks.

Posted 1:36 pm, February 6, 2018
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