Newark Airport, Amazon Move Forward With Major Deal In NJ

NEWARK, NJ — A major deal between the Port Authority of New York and New Jersey and Amazon has moved forward, and it will likely mean some big changes at Newark Liberty International Airport.

On Thursday, the agency’s board of commissioners gave the green light to a 20-year lease with Amazon Global Air, which paves the way for a new, “state-of-the-art air cargo campus” at Newark Airport (watch a video of the meeting below).

The deal is expected to lead to the creation of more than 1,000 jobs, Gov. Phil Murphy said.

According to a statement from the Port Authority:

“Amazon is expected to transform two existing structures, Buildings 339 and 340, into a new state-of-the-art air cargo campus with a targeted investment of $125 million for renovation. No Port Authority capital funding will be required in support of this transaction. The lease, which remains subject to final negotiation and is expected to take effect later this year, will provide the Port Authority a lump sum upfront payment of $150 million and another $157 million in additional rent over the life of the 20-year agreement, which covers about 250,000 square feet of cargo space on 23 acres at Newark Liberty.”

All architectural, engineering and construction activity relating to improvements to the facility, as well as contractors and subcontractors involved in operating the new cargo facility, would include “good faith participation goals” of 20 percent for Minority-owned Business Enterprises and 10 percent for Woman-owned Business Enterprises.

When complete, the transformation at Newark Airport will dramatically upgrade its cargo capacities, turbocharging an already-booming business engine, officials said.

As customers and vendors continue to turn to online outlets for commerce and goods, Newark has become the regional hub for small packages. Overall, air cargo supports 22,000 jobs, $4 billion in sales and $1.5 billion in overall wages throughout the Newark region, Port Authority officials said.

• See related article: Cargo Flights Are Helping United Airlines Weather COVID Crisis

“This investment in Newark Liberty International Airport will create 1,000 jobs and provide significant opportunities for minority- and women-owned business enterprises,” Gov. Murphy said, praising Thursday’s approval from the board.

“Air cargo is vital to the international supply chain, and with this new partnership, Newark will continue to be a global leader in logistics,” Murphy said. “This new e-commerce hub will provide needed revenue to the Port Authority, while also bringing new jobs to our state.”

“Newark Liberty is a critical driver of the regional economy,” agreed Port Authority Chairman Kevin O’Toole.

“This single partnership has the potential to grow the airport’s workforce by almost 5 percent and enhance its role as a vital part of our recovery from the economic impacts of COVID-19,” O’Toole added.

“We are excited about the outcome of today’s vote, recommending Amazon as the best partner to occupy air cargo space at Newark Liberty International Airport,” an Amazon spokesperson commented in a statement. “While the lease remains subject to final negotiation, this is a positive step forward.”

Thursday’s news is just the latest chapter in the Brick City’s ongoing relationship with Amazon.

Newark was one of the finalist cities in the frenzied attempt to land Amazon’s new headquarters in 2018. In an attempt to land the coveted headquarters – and the jobs that it would bring – New Jersey and Newark officials offered Amazon a staggering $7 billion in combined state and city tax breaks, drawing both support and criticism along the way.

The Brick City ultimately lost out to the New York City neighborhood of Long Island City and Arlington, Virginia.

• See related article: Amazon Officially Passes Up Newark For New Headquarters
• See related article: Amazon Nixes NYC Headquarters, But What About Newark?
• See related article: Race To The Bottom: NJ's Quest For Amazon HQ Is 'Insane,' Critics Say

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