Amazon’s expansion in New Jersey took a major step forward with word that the e-commerce giant is closing in on a $432 million lease at Newark Airport for two cargo buildings.

The location will serve as an East Coast distribution hub, meaning that those of us in New Jersey can expect our packages even faster.  It will handle air cargo of large shipments.  The new facility is expected to create 1,000 new jobs.

According to the Asbury Park Press, the Port Authority will get $150 million upfront in building rent, and an additional $157 million in land rent over two decades. Amazon will also invest about $125 million in the facility, including a building rehabilitation expected to start this year and finish by early 2023.

Mark Makela
Mark Makela

As part of the agreement, construction activity is to include 20 percent minority owned businesses and 10 percent women owned businesses.  According to the Port Authority, air cargo supports 22,000 jobs, $4 billion in sales and $1.5 billion in overall wages throughout the Newark region.

While a final agreement  between the Port Authority and Amazon hasn’t been reached, it is expected by November.

The new distribution hub follows Amazon’s announcement that it would be opening a new warehouse in Rutherford, as well as three new delivery centers in Edison, Lawrence, and Carlstadt.  The delivery centers are considered the “last mile” of the process.

Amazon says that they have created 49,000 jobs in New Jersey since 2010 alone, and it has invested $14.5 billion in the state including infrastructure and compensation.

The post above reflects the thoughts and observations of New Jersey 101.5 talk show host Bill Doyle. Any opinions expressed are Bill Doyle's own.

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