Amazon to build £1.2bn air cargo hub

By Gwen Ridler contact

- Last updated on GMT

Amazon plans to build a £1.2bn air cargo hub in the US
Amazon plans to build a £1.2bn air cargo hub in the US

Related tags: Transport

Online retail giant Amazon is to build a £1.2bn ($1.5bn) air cargo hub at an airport in the US and create more than 2,000 jobs, to help fulfil its global orders.

Amazon’s Prime Air hub at Cincinnati/Northern Kentucky airport (CVG), Hebron, will support its dedicated fleet of Prime Air cargo planes by loading, unloading and sorting packages.

The 2Mm2 ​facility will support the company’s 11 fulfilment centres located in Kentucky, delivering products to consumers worldwide.

Kentucky Republican senator John Schickel said Amazon’s cargo hub would advance the logistics industry and capture the world’s attention.

‘New global shipping hub’

“The scope of this new global shipping hub by Amazon – in terms of jobs and economic impact for Northern Kentucky alone – warrants a standing ovation,”​ Schickel said.

“I am personally grateful and extend my thanks to the company and the many individuals and organisations involved. The region’s already robust shipping and distribution industry will truly be a model for the world.”

Amazon has already leased 40 dedicated cargo airplanes from two carriers to support its Prime service – its next or same-day delivery service.

Dave Clark, Amazon senior vice-president of worldwide operations, said Hebron’s large, skilled workforce and proximity to the firm’s fulfilment centres made it the perfect location for the air hub.

“We feel strongly that with these qualities as a place to do business, our investments will support Amazon and customers well into the future,” ​added Clark.

Revolutionise the fulfilment industry

Governor of Kentucky Matt Bevin said the air hub would revolutionise the fulfilment industry worldwide.

Amazon launched its online grocery delivery service, Amazon Fresh, in June last year.​ The service is available in 69 central and east London postcodes, with the retailer planning to extend the service across the UK.

As well as groceries, the online retailer has long sold ambient food through its site.

Meanwhile, Amazon is reportedly planning to launch a checkout-free grocery store in London. About 12 prospective sites in the UK have been scouted by the firm, according to The Times.

It followed the launch of Amazon’s pilot Go store in Seattle in December last year, which uses sensors and customers’ Amazon accounts to buy groceries without going to a till.

The Seattle store is currently only available to Amazon staff, though there are plans to open 2,000 of the stores in the US if it is successful.

Related topics: Supply Chain, Ambient foods

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