Amazon Air Hub: $1.5 Billion Kentucky Cargo Hub Will Speed Up Deliveries

Amazon Air Hub: $1.5 Billion Kentucky Cargo Hub Will Speed Up Deliveries
Two years in the making, Amazon finally opened its Air Hub in the Cincinnati Northern Kentucky International Airport. Amazon customers can expect faster shipping across the U.S. with the new facility boasting miles of conveyor belts and chutes, robots, and more. Photo : Stephen Brashear/Getty Images

Amazon's Kentucky cargo air hub has just opened. After two years since it was first announced, the 800,000-square-foot facility is expected to process millions of packages every week. Amazon customers can expect faster shipping across the U.S..

Amazon Air Hub in the Cincinnati Northern Kentucky International Airport

Jeff Bezos first announced Amazon's $1.5 billion investment back in May of 2019. The 800,000-square-foot air hub was built in the Cincinnati / Northern Kentucky International Airport, The Verge reported.

Two years in the making, the facility is fitted with miles of conveyor belts and chutes, robots, and more. The hub, spanning three football stadiums in size, is designed to have the capacity for a hundred Amazon-branded airplanes, according to CNBC.

Among Amazon's fleet of aircraft include converted Boeing 737s and used Boeing 767-300 jets. The planes are branded with Amazon's logo and Prime shade of blue.

Amazon Air started in 2016 and it has since then expanded its fleet to over 70 planes this year. It recently acquired 11 jets earlier this year as part of its transportation and logistics network. Amazon's air fleet operates out of more than 40 airports across the U.S., CNBC said. This dedicated air terminal will allow Amazon to take control and upgrade its one-day and same-day delivery capabilities to cover more areas across the country.

The operations benefits of having a central hub for package processing and flight cargo all boils down to the speed it affords logistics-wise. That is why UPS has a hub in Louisville, Kentucky, FedEx ships packages through Memphis, Tennessee, and DHL houses a hub in the same airport as Amazon, The Verge explained.

Amazon has stopped operating with FedEx for its air and ground transportation in 2019 and it looks like the company could be looking into taking more control over its packages and ultimately its logistics chain.

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Amazon Packages Shipped Out Through the Air Hu

Given the gigantic operating capacity of the Kentucky Air Hub, some analysts and experts wonder if Amazon is looking to offer its air cargo serves to other companies. This would not be a farfetched idea considering that it could expand the company's revenue streams.

According to Amazon Global Air vice president, Sarah Rhoads said the company is focused on handling its own package volume for now.

The company is looking to expand and own more than 80 planes by this time next year, and 85 leased and owned aircraft by the end of 2022, CNBC added.

Packages shipped out from the air hub will be moving quickly across the floor with the help of mobile drive units and Robin robotic arms, Amazon boasted. Amazon expects that by the end of this year, the air hub will operate a dozen od flights per day and should be processing "millions of packages every week."

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