Amazon's plans to establish a regional freight hub at Newark Liberty International Airport have been placed on hold, David Porter reported for the Associated Press (AP).
Photo Insert: The Port Authority of New York and New Jersey, which operates Newark Liberty International Airport, said that negotiations with the eCommerce giant had failed for the past year.
The Port Authority of New York and New Jersey, which operates the airport, said in a statement Thursday that negotiations with the eCommerce giant had failed for the past year.
“Over the past year, the Port Authority and Amazon have engaged in good-faith negotiations,” Port Authority Chief Operating Officer Huntley Lawrence said in the statement.
“Unfortunately, the Port Authority and Amazon have been unable to reach an agreement on final lease terms and mutually concluded that further negotiations will not resolve the outstanding issues.”
Last August, the Port Authority's board of directors granted a 20-year lease for two 1990s-era buildings at the airport that Amazon planned to redevelop into a state-of-the-art, 250,000-square-foot (23,225-square-meter) air cargo campus.
The refurbishment alone was anticipated to cost Amazon $125 million at the time. The corporation would have paid an initial payment of $150 million and rent of $157 million over the next two decades. The facility was set to open the next year.
Amazon, through a representative, expressed disappointment over the failure to strike a deal and that it was looking into alternate places for a freight center but did not say where.
Some labor and environmental groups, as well as local leaders, had opposed the plans, alleging that the hub would have added to the already-heavy truck traffic from neighboring Port Newark. They have also attacked Amazon's employee working conditions.