Amazon invests $1.5 billion to build an air cargo center or challenge UPS

On the evening of February 1, Beijing time, officials from Kentucky said today that Amazon will invest 1.49 billion US dollars to establish an air cargo center in the state. In the future, Amazon is likely to compete directly with United Parcel Service (UPS) and FedEx.

It is reported that Amazon has agreed to lease approximately 900 acres of land from Cincinnati/Northern Kentucky International Airport for a period of 50 years. Amazon will receive $40 million in tax incentives from the local government. Amazon said that after the official completion of the air cargo center, it will create more than 2,000 jobs.

It is worth mentioning that UPS World Port, the world's largest logistics transit center, and FedEx's largest parcel sorting center are located in Kentucky. According to industry insiders, Amazon's move will reduce its reliance on traditional freight giants such as UPS and FedEx, and it is expected to become their direct competitor in the future.

Last year, Amazon reached an agreement with two airlines to lease 40 dedicated freighters to enhance its cargo capacity. So far, 16 of them have been delivered and put into use. Amazon said that the lease of aircraft is only to speed up transportation efficiency, and to support cargo partners during the holiday season to solve the freight burden. In recent years, FedEx and UPS have experienced delayed delivery during the Christmas season.

For a long time, Amazon has been an active investor in Kentucky. In the past 20 years, Amazon has recruited more than 10,000 full-time employees in 11 service centers established in the state.