Amazon to build cargo hub in Kentucky, in possible move to vie with FedEx
San Francisco — Amazon.com plans to invest $1.49bn to build a large air cargo hub in northern Kentucky, state officials said on Tuesday, stoking expectations it may one day opt to directly compete with FedEx and United Parcel Service. The world’s biggest online retailer has agreed to a 50-year lease for about 365ha of property from Cincinnati/Northern Kentucky International Airport — close in size to the global hubs of top cargo airlines. Amazon is handling more shipping in-house so it can deliver packages to customers faster, as well as cut costs and uncertainty associated with relying on third parties. It has said its moves are designed to supplement, not replace cargo carriers. Analysts suspect it has larger ambitions. "We estimate a $400bn-plus market opportunity for Amazon in delivery, freight forwarding and contract logistics," Colin Sebastian, an analyst for Baird Equity Research, said in a note to clients.
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