Amazon To Build a $1.5 Billion Air Cargo Hub in Kentucky

Amazon is planning to build an Air Cargo Hub in Kentucky. This flying warehouse patent that Amazon recently announced is pie in the sky.

As per the reports,  Amazon is planning to build its first air cargo hub at Northern Kentucky Airport which will be based on sound economics. This Air Cargo Hub is supposed to be a 2-million-square-foot facility opens, it will reduce the company’s dependence on UPS and FedEx in the area.

Amazon, the e-retail company had already started to give an increasing share of its parcel business to lower cost regional providers, and many e-commerce shoppers have seen their orders delivered by it’s the company’s fleet of private trucks.

Amazon is taking greater control over shipments from China. Amazon has started handling the shipment of goods from Chinese retailers that sell on its platform. In this line of business Amazon is acting as its own freight forwarder by reserving space on ships and clearing customs itself. This will also reduced the fees it pays to outside logistics providers. So far, Amazon has helped ship 150 containers from China to the US.

Amazon plans to use this new air hub to house its current and future fleet of planes. This is expected to cost Amazon over $1.5 billion, which means this will be a highly automated facility, just as UPS’s and FedEx’s are. As per the reports the company will initially employ 2,000 people, which means this hub will work at scale.

Reports say that Amazon’s end goal is to deliver packages for itself and other retailers.