Amazon future: 900 acres cargo hub worth $1.49 billion, fleet of 40 aircraft and 200 flights per day

Amazon future: 900 acres cargo hub worth $1.49 billion, fleet of 40 aircraft and 200 flights per day Follow @merinews

02 February, 2017

Taking its business to another level, Amazon is developing its own cargo hub near Cincinnati. The hub that costs $1.49 billion and is spread to more than 900 acres, is designed to handle than 200 flight departures and landings per day.

The cargo hub is another step of the company towards efficiently handling shipping in-house, cutting costs and speeding up packages.

The company said that the new venture of the company will result in about 2,000 total new jobs being created.

The company currently has a fleet of 40 cargo planes which have been named under the name of Amazon Prime Air and are helping the company in its transportation needs.

"As part of the agreement, Atlas Air Worldwide Holdings Inc. will acquire and operate 20 Boeing Co. 767-300 freighters for Amazon" the company said in a statement.

In March last year, the company had a transaction with Air Transport Services Group Inc. and would double Amazon's cargo-hauling fleet to 40 Boeing 767 freighters.

Analysts have reportedly said that having its own fleet will be extremely beneficial for the company which has in past struggled with keeping up with the demand at the time of holidays.

However the company has clarified that it is not looking towards replacing its delivery partners. Amazon Chief Financial Officer Brian Olsavsky, reportedly said that Amazon was looking to supplement, not replace, the capacity of its delivery partners.

By having more control over its transportation, logistics, air cargo and transportation related operations, Amazon is focusing on the future of e-commerce aligned with its plans of rapid expansion through Prime and Prime Now.