Over the next several years, Amazon will build a $1.49 billion shipping hub to serve its fleet of Prime Air planes at the Cincinnati/Northern Kentucky International Airport (CVG) in Hebron, creating 2,700 full- and part-time jobs. Amazon’s Prime Air hub will expand the company’s presence in Kentucky where it already employs more than 10,000 full-time team members at several fulfillment center locations in Central and Northern Kentucky.
“As we considered places for the long-term home for our air hub operations, Hebron quickly rose to the top of the list with a large, skilled workforce, centralized location with great connectivity to our nearby fulfillment locations, and an excellent quality of living for employees,” said Dave Clark, Amazon senior vice president of worldwide operations. “We feel strongly that with these qualities as a place to do business, our investments will support Amazon and customers well into the future. We couldn’t be more excited to add 2,000-plus Amazon employees to join the more than 10,000 who work with us today across our robust operations in Kentucky.”
The new Prime Air hub will create thousands more induced and indirect jobs. Combined with the hub’s direct jobs, total annual payroll and benefits associated with the project will reach well into the hundreds of millions of dollars. Similarly, the project’s economic impact will add hundreds of millions of dollars annually to the state GDP.
“Amazon’s Prime Air hub promises to revolutionize the fulfillment industry worldwide, and Kentucky is excited to partner with them as they embark on this disruptive, transformative and exciting venture,” said Gov. Matt Bevin. “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 to the commonwealth.”
Agreements by the Kenton County Airport Board and the Kentucky Economic Development Finance Authority, allow Amazon to build the state-of-the-art sorting, loading and unloading facility on the airport property. Airport board members approved a 50-year lease expandable to 900 acres of property. Additionally, CVG will invest $5 million in supporting infrastructure that will benefit the airport as a whole.
Last year, Amazon entered into agreements with two carriers to lease 40 dedicated cargo airplanes to support Prime members with fast, free shipping. Today, 16 of those planes are in service for Amazon customers with more planes rolling out over time. Amazon’s Prime Air hub at CVG will support Amazon’s dedicated fleet of Prime Air cargo planes by loading, unloading and sorting packages.
“The Cincinnati/Northern Kentucky International Airport is the perfect home for Amazon’s new shipping hub. From here, the company will be able to quickly and reliably reach its customers around the world,” said Candace McGraw, CVG’s chief executive officer. “We’ve worked hard to continue diversifying the airport’s revenue streams through targeted cargo and other means, and we are thrilled to partner with Amazon in this new endeavor. In addition to benefitting the company and its customers, Amazon Prime Air will further distinguish CVG and bring significant growth to the region.”
To encourage the investment and job growth, the Kentucky Economic Development Finance Authority has preliminarily approved Amazon for tax incentives up to $40 million through the Kentucky Business Investment program. The performance-based incentive allows the company to keep a portion of its investment over the agreement term through corporate income tax credits and wage assessments by meeting job and investment targets.
In addition, Amazon can receive resources from the Kentucky Skills Network. Through the Kentucky Skills Network, companies can receive no-cost recruitment and job placement services, reduced-cost customized training and job training incentives. In fiscal 2016, the Kentucky Skills Network provided training for nearly 95,000 Kentuckians and 5,000 companies from a variety of industry sectors.
“In addition to creating an outstanding number of direct jobs and further establishing Kentucky as a beacon location for the distribution and logistics industry, it’s important to recognize the wider economic impact Amazon’s Prime Air hub will create,” said Terry Gill, secretary of the Kentucky Cabinet for Economic Development. “Fully realized, this new operation will add hundreds of millions of dollars annually to Kentucky’s GDP. And it will generate thousands of indirect jobs and hundreds of millions in annual wages and benefits. My congratulations to Amazon on selecting the commonwealth for this prestigious new project. We look forward to the ongoing, deeper and broader relationship.”
Relocating or Expanding Your Business In Kentucky
Considering Kentucky for your company’s relocation or expansion project? Check out Business Facilities’ Kentucky Incentives and Workforce Development Guide.