Online retail giant Amazon has announced plans to build an air cargo hub at Cincinnati/Northern Kentucky Airport in Hebron, U.S. The move is intended to support its growing fleet of aircraft and should create in excess of 2,000 jobs. It is anticipated the costs will be in the region of US$1.5 billion.
Having agreed to lease 40 dedicated Prime Air cargo planes last year, 16 are now in service, while Amazon’s website presently lists over 30 carriers that are used to transport packages, including FedEx and United Parcels Service (UPS). It is understood that the creation of the new cargo hub will enable Amazon to take more control over the entire process of ordering goods to their delivery for their customers.
According to Steve Banker, vice president of supply chain services at ARC Advisory, this is a sign of Amazon “ramping up” its business, adding that “Amazon still loses money on deliveries, the IT service side of their business supports the retail operations. Owning the whole chain cuts out the middleman fees.”
The move will provide a considerable economic boost for the region. The Governor of Kentucky, Matt Bevin, was quick to respond by stating that the news was “Exciting”.
“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.” Candace McGraw, chief executive of the airport, described the hub as “transformational” for the economy and businesses in the area.