Amazon is looking to invest in a new air cargo hub that could serve as an even faster delivery facility as the company is trying to better control its shipping operation.
The news should come as no big surprise. Amazon has been pushing forth and trying to optimize its delivery system for quite some time. Their actions began back in 2013. At the time, the huge company was faced with logistical difficulties.
Its several shipping firms were struggling with the huge number of deliveries. This led to various delays. Following the event, Amazon stated that it will be looking into its carriers’ delivery performances.
Now, the company seems to be one step closer to reaching a shipment autonomy. Amazon.com started out as an online bookstore. Presently, it has developed into one of the largest global companies. It is considered the biggest Internet-based retailer by market capitalization. And also by total sales numbers. And this at a worldwide level.
Amazon is based in Seattle, Washington. It is a cloud computing and electronic commerce company. It also produces various electronic devices. The company’s services have a worldwide span.
On January 31, Amazon announced that it will be expanding its distribution segment. It is planning on building a new air cargo hub. This new facility could bring a number of significant advantages.
The air cargo hub could host Amazon’s increasing aircraft fleet. In 2016, the company signed a cargo plane lease. This involved a number of 40 Prime Air aircraft. Presently, 15 of them are already in service.
The remaining cargo planes will enter service once the air operations expand. This new air cargo hub is expected to house the complete plane fleet.
According to the presented information, the air cargo hub could be built in Kentucky. Its construction is expected to begin sometime this year. It could enter into operation by 2022 or 2024. This will depend on the construction process.
Amazon did not reveal its investment estimates. However, market analysts approximated it at around $1.5 billion. More details on the matter will probably be released later on.
The construction of the new air cargo hub will also be adding new jobs. Amazon’s new Kentucky hub could add over 2,000 new workplaces. These will be joining the company’s current numbers. Presently, the company employees about 10,000 people.
Amazon also offered some further details. It explained the reasons for choosing Kentucky. The new air cargo hub could benefit from the centralized locations. This could help lead to a better goods distribution.
And the customers should be the most benefited. This new air cargo hub should ensure an even faster delivery time. Amazon has been increasing its implication in the shipment process. The company contracted new cargo plane carriers. They should help move around goods in a fast, free delivery.
It has also been investing in the trailers segment. These should help truck goods in between the various U.S.-based warehouses. Over a year ago, it also engaged an ocean freight. This is meant to help contract shipments from China to the U.S. ports.
The latest announcement also reflects another fact. Amazon seems to be trying to take control over its shipment operation. Its effort should pay off for both customers and company. Goods delivery is a very important element in the e-commerce segment. It could help ensure company growth.
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