Market Overview

Amazon Air Picks San Bernardino Airport For Western Hub

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Amazon Air Picks San Bernardino Airport For Western Hub

As expected, Amazon Inc's (NASDAQ: AMZN) newest air hub will be in San Bernardino, California, where feeder aircraft from various cities and trucks from nearby warehouses will arrive with packages to be sorted and redistributed nationwide on outbound airplanes.

The San Bernardino International Airport authority made the announcement Friday, confirming what had been an open secret about who would occupy a 700,000-square-foot campus with additional space for 14 all-cargo aircraft.

Developer Hillwood Enterprises began construction on the site in January and is scheduled to complete the project by the end of the year.

"Our new Regional Air Hub at SBD International Airport allows us to better deliver on our commitment of fast, free shipping for our customers," said Sarah Rhoads, vice president, Amazon Global Air, in a statement. "The Regional Air Hub is being built from the ground up to fit Amazon Air's operational needs, including the use of solar power and electric ground support equipment. We look forward to opening the facility in 2021."

Amazon has been building out its air fleet and infrastructure in recent years to have more direct control of shipping expenses and performance in an effort to meet same-day, one-day, and two-day delivery promises for Prime customers.

A photo of the site shared with FreightWaves by the airport authority shows about half the main building's outer wall and some structural supports have been erected so far.

Local officials praised the $200 million Eastgate Air Cargo Logistics Center for bringing economic and employment benefits to the community, which sits in the warehouse-dense Inland Empire, about an hour ‘s drive east of Los Angeles. But the state of California and a coalition of environmental and neighborhood groups have separately sued to stop the privately financed project until more pollution-mitigation measures and job guarantees are included in the lease. Opponents say their concerns have not been taken into account. They contend that the diesel emissions from the huge number of trucks in the area are causing serious health issues for residents and also that the warehouses are not paying good living wages.

Opening briefs from the plaintiffs are due in court on June 22, according to the California Attorney General's office.

Amazon Air operates more than 45 aircraft at more than 20 U.S. air gateways. Its primary air hub at Cincinnati/Northern Kentucky International Airport will open in 2021. 

The East Gate Air Cargo Logistics Center is designed to handle up to 26 takeoffs and landings per day.

San Bernardino Airport has experienced phenomenal cargo growth after it became a node in the United Parcel Service Inc (NYSE: UPS) air network in late 2017 and FedEx Corporation (NYSE: FDX) opened a facility in 2018. That year, cargo landed weight increased by 805% to 182 million pounds.

Logistics companies see the airport as a strategic alternative to Los Angeles International Airport and nearby warehouses because of its lower cost structure and less crowded conditions. A new dedicated truck entrance on a major arterial roadway separates trucks from other vehicles entering or exiting the airport and was designed to facilitate speedy truck inspections.

Photo by Shoval Zonnis from Pexels.

The preceding article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

 

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