Amazon signs 20yr. lease with Port’s EWR
26 AIRPORT VOICE, AUGUST 2021
Expands airport’s cargo facilities at Bldgs 339, 340
The Port Authority Board of Commissioners
today authorized the Executive
Director to enter into a 20-year lease with
Amazon Global Air to redevelop and expand
air cargo facilities at Newark Liberty
International Airport, a major step forward
in providing world-class air cargo service
across agency airports in an increasingly
dynamic market according to Port executives.
“Newark Liberty is a critical driver of
the regional economy,” said Port Authority
Chairman Kevin O’Toole. “This single
partnership has the potential to grow the
airport’s workforce by almost 5 percent
and enhance its role as a vital part of our
recovery from the economic impacts of
COVID-19. The months to come will see
additional investments as we deliver on
our promise of transforming Newark Liberty
into a world-class facility for our region.”
Amazon is expected to transform two
existing structures, Buildings 339 and
340, into a new state-of-the-art air cargo
campus with a targeted investment of
$125 million for renovation. No Port Authority
capital funding will be required in
support of this transaction. The lease,
which remains subject to final negotiation
and is expected to take effect later this
year, will provide the Port Authority a lump
sum upfront payment of $150 million and
another $157 million in additional rent over
the life of the 20-year agreement, which
covers about 250,000 square feet of cargo
space on 23 acres at Newark Liberty.
Overall, air cargo supports 22,000
jobs, $4 billion in sales and $1.5 billion in
overall wages throughout the Newark region.
“This investment in Newark Liberty
International Airport will create 1,000 jobs
and provide significant opportunities for
minority- and women-owned business enterprises,”
said Governor Phil Murphy.
“Today’s Board vote will enable the
best use of the air cargo facilities by providing
for the development and maintenance
of a premier international air cargo
complex, one that we fully expect will continue
to increase critical air cargo activity
at Newark Liberty,” said Board Vice Chairman
Jeffrey Lynford.
“We are excited about the outcome
of today’s vote, recommending Amazon
as the best partner to occupy air cargo
space at Newark Liberty International
Airport. While the lease remains subject
to final negotiation, this is a positive step
forward,” said an Amazon spokesperson.
Amazon Prime Air uses mostly Boeing
737s and 767s for its freight flights operated
by other companies.
Today’s vote paves the way for upgrading
the existing space, including high utilization
for e-commerce package sortation
and incremental cargo activity, as well as
providing the most highly positive revenues
for the Port Authority. It is expected
to lead to the creation of more than 1,000
jobs at the airport.
In addition, all architectural, engineering
and construction activity relating to
improvements to the facility, as well as
contractors and subcontractors involved
in operating the new cargo facility, would
include good faith participation goals of
20 percent for Minority-owned Business
Enterprises and 10 percent for Womanowned
Business Enterprises.
Amazon has several huge faciiities
within 5 minutes of EWR. Buildings 339
and 340 currently are home to more than
a dozen airlines cargo handling operations.
Many are concerned over their future
home and whether Amazon has provisions
for them. According to people
familiar with the current tenants, the Port
has said it will work with these cargo companies
and airlines and help with any relocation
and transition needs.
Hub at Cincinnati
Operations have begun at the Amazon
Air Hub at the Cincinnati/Northern
Kentucky International Airport. After more
than four years of planning and construction,
the Amazon Air Hub will serve as the
central hub for Amazon Air’s U.S. cargo
network, facilitating the rapid transport of
customer packages across the country.
This $1.5 billion investment in Northern
Kentucky will eventually create thousands
of jobs for people from various backgrounds,
including load planning, management
of package sortation, and robotics
technology. The 800,000-square-foot
(74,300 sq m) sortation building sits on
an over 600-acre (243 ha) campus that
features seven buildings, an expansive
new ramp for aircraft parking, and a multistory
vehicle parking structure. In 2017, it
changed its name from Amazon Prime Air
to Amazon Air to differentiate themselves
from their emerging drone delivery service.
However, the Prime Air logo remains
on the aircraft.
LGA AirTrain Promenade
Redevelopment
Stakeholder, Flushing Bay Park community benefits
It has been a long ride to the FAA
final record of decision for the LGA
Air Train, but it has arrived. Construction
is set to begin shortly with
initial work of infrastructure at La-
Guardia. All efforts have been taken
by the Port to interact with the surrounding
community to mitigate the
potential effects of the AirTrain construction
and by beautifying and enhancing
the Flushing Bay Park and
Promenade as a community asset.
Enhancements include site amenities
with walkway repairs, railing
replacement, bulkhead repair,
landscaping, improved site access,
maximize promenade experience
with views of the water and skyline,
use of passive seating for outdoor
educational uses, connectivity with
adjacent neighborhoods, sustainability
and resilient enhancements
and coordination with adjacent existing
and proposed projects.
At a recent community meeting,
Port management announced maximum
opportunities for minority enterprises,
a pathway for local residents
to join unions and securing
of construction jobs. There will be a
minimum of 30% minority contracts,
with significant $500 million of contracts
for MWBE, MBW, and SDVOB.
The CAO in Elmhurst has been
funded through 2025 to achieve
these goals.
Port is attuned to the impact of
noise on the neighboring communities
and is installing vibration and
noise monitors in the construction
area.
The Port reported that their promenade
design team is in the process
of setting up meetings for community
participation in the final Promenade
design and will have a meeting
in September for continued stakeholder
involvement. The Promenade
design timeline is Conceptual design:
Q3 2021 •Preliminary design:
Q1 2022 •Final design: Q3 2022 with
Air Train completion in 2025.
In addition to the beautification
and Promenade redevelopment,
Port has initiated full tuition scholarships,
and STEM awards as community
benefits to augment the overall
public benefit of the Air Train.
More can be read here:
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AirTrain hotline 929-445-4225
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