Amazon to build $1.4B air cargo hub @ CVG
01-31-2017, 11:45 AM
#1
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Amazon to build $1.4B air cargo hub @ CVG
Amazon plans worldwide cargo hub, 2,700 jobs at CVG
Online retail giant Amazon will build a worldwide air cargo hub at Cincinnati/Northern Kentucky International Airport, CVG officials announced Tuesday.
Seattle-based Amazon will invest $1.4 billion in the operation and create 2,700 new jobs, 600 of which will be full-time.
It would be the largest single investment by a company ever in Northern Kentucky, said Dan Tobergte, president of Northern Kentucky Tri-County Economic Development Corporation (Tri-ED).
Next largest was Delta’s $379 million hub expansion at the airport in 1993, he said.
“We’ve never seen a deal this size,” Tobergte said.
Airport officials credited Kentucky Gov. Matt Bevin for playing a key role in helping to land the Amazon hub. The governor, according to airport CEO Candace McGraw, has called the deal "revolutionary."
"The governor has been very engaged with this project – as engaged as any governor I've ever seen with a project," Boone County Judge-executive Gary Moore said.
Bevin has made a pledge to the region to support road and other infrastructure improvements to make way for the hundreds of workers, Tobergte said.
The deal further establishes CVG as a major air cargo hub. The airport also is home to DHL's North American hub, one of the Germany-based shipping giant's three major hubs across the globe. Amazon's hub will cover nearly 920 acres around the Hebron-based airfield. The company will house 40 aircraft at CVG, which plans to invest $5 million to help the new hub.
The Kentucky Economic Development Finance Authority gave preliminary approval Tuesday for $40 million in state and local payroll tax incentives. These incentives, along with the airport's central location in the country, helped beat out other areas of the country, Tobergte said. Competition was steep, Tobergte said, though he wouldn't name the other areas vying for the air hub.
"They're quite successful at what they do and we're glad we got picked," Tobergte said. "We can't say where, but there were other airport hub opportunities and we won out."
Kenton County Airport board held a separate special meeting to finalize the deal Tuesday afternoon.
Online retail giant Amazon will build a worldwide air cargo hub at Cincinnati/Northern Kentucky International Airport, CVG officials announced Tuesday.
Seattle-based Amazon will invest $1.4 billion in the operation and create 2,700 new jobs, 600 of which will be full-time.
It would be the largest single investment by a company ever in Northern Kentucky, said Dan Tobergte, president of Northern Kentucky Tri-County Economic Development Corporation (Tri-ED).
Next largest was Delta’s $379 million hub expansion at the airport in 1993, he said.
“We’ve never seen a deal this size,” Tobergte said.
Airport officials credited Kentucky Gov. Matt Bevin for playing a key role in helping to land the Amazon hub. The governor, according to airport CEO Candace McGraw, has called the deal "revolutionary."
"The governor has been very engaged with this project – as engaged as any governor I've ever seen with a project," Boone County Judge-executive Gary Moore said.
Bevin has made a pledge to the region to support road and other infrastructure improvements to make way for the hundreds of workers, Tobergte said.
The deal further establishes CVG as a major air cargo hub. The airport also is home to DHL's North American hub, one of the Germany-based shipping giant's three major hubs across the globe. Amazon's hub will cover nearly 920 acres around the Hebron-based airfield. The company will house 40 aircraft at CVG, which plans to invest $5 million to help the new hub.
The Kentucky Economic Development Finance Authority gave preliminary approval Tuesday for $40 million in state and local payroll tax incentives. These incentives, along with the airport's central location in the country, helped beat out other areas of the country, Tobergte said. Competition was steep, Tobergte said, though he wouldn't name the other areas vying for the air hub.
"They're quite successful at what they do and we're glad we got picked," Tobergte said. "We can't say where, but there were other airport hub opportunities and we won out."
Kenton County Airport board held a separate special meeting to finalize the deal Tuesday afternoon.
01-31-2017, 02:33 PM
#4
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Joined APC: Aug 2016
Posts: 493
Originally Posted by CTRCommander
My buddy at Brown said this was just a rumor
But, hey, now this makes it really easy to strike Amazon and DHL at the same time with no excuses. And the cross-use of DHL facilities for a while is going to create all sorts of interesting legal opportunities to screw with them. From a dealing-with-labor perspective, it is, in my view, stupid as hell of Amazon to get anywhere near DHL. But I guess other factors drove the decision and they are willing to take the risk on that. Or they were just dumb.
01-31-2017, 03:07 PM
#9
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Joined APC: Apr 2016
Posts: 430
Originally Posted by wjcandee
Got it. You were illustrating what a nickel and a cockpit rumour can buy you...
Your absolutely right on the labor side of it. Especially since we have a possibility of all being Teamster. Dependent on the single carrier filing. I think ABX has a pretty strong case.
I can't possibly imagine how chaotic ATC is going to get.
Plus they'll have greatly expand the fuel farms and other logistics.
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