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Amazon (AMZN) to Build its First Air Cargo Hub in Kentucky
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Amazon.com, Inc. (AMZN - Free Report) will build its first air cargo hub at Cincinnati/Northern Kentucky International Airport, investing around $1.5 billion. The company announced yesterday that the new facility will create more than 2,000 new jobs and support its growing fleet of cargo planes.
The company already has a strong presence in Kentucky with 11 fulfillment centers and 10,000 employees.
Over the last one year, the stock has outperformed the Zacks Electronic Commerce industry. It has gained 43.22% compared with the industry’s gain of 40.93%.
State officials announced that the local airport board has approved a 50-year lease for Amazon for up to 900 acres of airport property that the company will use to build loading, unloading and sorting facilities. The project will generate 2,700 full- and part-time jobs, the officials stated.
Amazon has received a preliminary approval for $40 million in tax incentives over the next 10 years from The Kentucky Economic Development Authority.
Amazon’s current cargo fleet consists of 16 leased Boeing 767 cargo jets. Last year, the company partnered with Air Transport Services Group, Inc. (ATSG - Free Report) and Atlas Air Worldwide Holdings, Inc. to lease as many as 40 cargo planes by 2018.
With this new move, Amazon will join German cargo shipper DHL, which has an international shipping hub in the same airport. It will reportedly use DHL’s facilities while it builds its own.
Amazon Goes the Extra Mile to Beef Up Logistics
The move underscores Amazon’s accelerated push toward building its own in-house shipping and logistics service to support the complex network of fulfillment, logistics and delivery systems that it has been building.
The company has built a strong network of 149 fulfillment and 20 sortation centers worldwide and deploys robotics, machine learning, algorithms and other technological advancements to improve delivery speed.
Building its own in-house shipping and logistics service will help Amazon to address increasing delivery demand and improve delivery speed at its Prime business.
Amazon may not immediately do away with traditional shippers like FedEx Corp. (FDX - Free Report) and United Parcel Service, Inc. (UPS - Free Report) but it is certainly going to build alternatives/supplements by developing its own global logistics. UPS has its largest air hub in Louisville.
Amazon is currently a Zacks Rank #5 (Strong Sell) company.
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>
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Amazon (AMZN) to Build its First Air Cargo Hub in Kentucky
Amazon.com, Inc. (AMZN - Free Report) will build its first air cargo hub at Cincinnati/Northern Kentucky International Airport, investing around $1.5 billion. The company announced yesterday that the new facility will create more than 2,000 new jobs and support its growing fleet of cargo planes.
The company already has a strong presence in Kentucky with 11 fulfillment centers and 10,000 employees.
Over the last one year, the stock has outperformed the Zacks Electronic Commerce industry. It has gained 43.22% compared with the industry’s gain of 40.93%.
State officials announced that the local airport board has approved a 50-year lease for Amazon for up to 900 acres of airport property that the company will use to build loading, unloading and sorting facilities. The project will generate 2,700 full- and part-time jobs, the officials stated.
Amazon has received a preliminary approval for $40 million in tax incentives over the next 10 years from The Kentucky Economic Development Authority.
Amazon’s current cargo fleet consists of 16 leased Boeing 767 cargo jets. Last year, the company partnered with Air Transport Services Group, Inc. (ATSG - Free Report) and Atlas Air Worldwide Holdings, Inc. to lease as many as 40 cargo planes by 2018.
With this new move, Amazon will join German cargo shipper DHL, which has an international shipping hub in the same airport. It will reportedly use DHL’s facilities while it builds its own.
Amazon Goes the Extra Mile to Beef Up Logistics
The move underscores Amazon’s accelerated push toward building its own in-house shipping and logistics service to support the complex network of fulfillment, logistics and delivery systems that it has been building.
The company has built a strong network of 149 fulfillment and 20 sortation centers worldwide and deploys robotics, machine learning, algorithms and other technological advancements to improve delivery speed.
Amazon.com, Inc. EPS Diluted (TTM)
Amazon.com, Inc. EPS Diluted (TTM) | Amazon.com, Inc. Quote
Building its own in-house shipping and logistics service will help Amazon to address increasing delivery demand and improve delivery speed at its Prime business.
Amazon may not immediately do away with traditional shippers like FedEx Corp. (FDX - Free Report) and United Parcel Service, Inc. (UPS - Free Report) but it is certainly going to build alternatives/supplements by developing its own global logistics. UPS has its largest air hub in Louisville.
Amazon is currently a Zacks Rank #5 (Strong Sell) company.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Zacks' Top 10 Stocks for 2017
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2017?
Who wouldn't? As of early December, the 2016 Top 10 produced 5 double-digit winners including oil and natural gas giant Pioneer Natural Resources which racked up a stellar +50% gain. The new list is painstakingly hand-picked from 4,400 companies covered by the Zacks Rank. Be among the very first to see it>>