Amazon in deal with New Jersey’s Newark Airport to develop air-cargo facility
Amazon is going to touch down at Newark Liberty International Airport in Newark, New Jersey.
The e-commerce giant’s cargo airline, Amazon Global Air, has entered into an agreement with the Port Authority of New York and New Jersey to transform two existing structures at the airport into a “state-of-the-art air cargo campus” with a targeted investment of $125 million for renovation. The agreement covers about 250,000 sq. ft. of cargo space on 23 acres.
[Read More: Amazon expands Amazon Air delivery capacity]
The lease, which is still subject to final negotiation, is expected to take effect later this year. It will provide the Port Authority an upfront payment of $150 million and another $157 million in additional rent over the life of the 20-year agreement, according to a statement from the Port Authority.
“This investment in Newark Liberty International Airport will create 1,000 jobs and provide significant opportunities for minority- and women-owned business enterprises," N.J. Gov. Murphy said on Thursday after the proposal was approved by the board of the Port of Authority, “Air cargo is vital to the international supply chain, and with this new partnership, Newark will continue to be a global leader in logistics.”
Under the terms of the proposed lease, Amazon will make commitments to participation goals that include using minority-owned business enterprises (20%), women-owned business enterprises (10%) and disabled veteran-owned business enterprises (3%). It will also make a “good-faith effort to use local business enterprises for contracting and subcontracting opportunities, target the hiring of local residents commit to investing in infrastructure that would support zero emissions, ground service equipment and solar infrastructure.
[Read More: Amazon becomes top corporate renewable energy buyer in U.S.]