Amazon broke ground on Tuesday for its new USD 1.5 billion Amazon Air Hub located in the US state of Kentucky at the Cincinnati/Northern Kentucky International Airport (CVG).
The 278,700 sqm cargo hub with a 23,225 sqm loading dock, was originally announced in 2017 and is scheduled to open in 2021 and will see some 2,000 Amazon employees working at the facility.
Amazon will operate its 40 leased B767 freighters out of the hub with the 10 additional it recently signed for with Atlas Air Worldwide, coming on stream over the next two years. The hub can support a fleet of more than 100 aircraft. The facility is located at CVG on some 364 hectares of land which Amazon is leasing from the airport for 50 years.
“This hub is going to let us get packages to customers faster,” Jeff Bezos, chairman, CEO, and president of Amazon says. “We’re going to move Prime from two days (delivery) to one day,” Bezos adds.
Amazon announced last month it was cutting its Prime free-delivery times in half, from two days to one, with the e-commerce giant saying it expects move to cost it nearly USD 800 million this quarter to make the change.
The northern Kentucky air hub is part of Amazon’s long-term Amazon strategy to take greater control over its supply chain and reduce its dependence on third-party logistics providers.
“Our new Amazon Air hub, opening in 2021, is part of our continued investment in Prime to ensure we have the capacity required for continued outstanding service for our customers,” says Sarah Rhoads, director, Amazon Air.
“A vibrant airport with a strong air cargo footprint improves the economic vitality of our region,” adds Candace McGraw, CEO, Cincinnati/Northern Kentucky International Airport. “We are grateful to the Amazon team for locating its Central Air Cargo Hub at CVG. We look forward to a long and fruitful partnership.”