The online retailer is leasing 900 acres of property. As Fred Katayama reports,
Possibly new competition for FedEx and UPS. Amazon.com - which already leases Boeing planes like this one to handle more of its own deliveries - now plans to spend $1.5 billion to build a huge air cargo hub in northern Kentucky. State officials said the online retailer will lease 900 acres of property near the Cincinnati/Northern Kentucky airport. That's about as big in space as the hubs of top cargo airlines, and analysts suspect Amazon's ambitions are larger. Baird analyst Colin Sebastian said, "We estimate a $400 billion-plus market opportunity for Amazon in delivery, freight forwarding, and contract logistics." Amazon expects its cargo hub will create more than 2,000 jobs. It hasn't said when it'll open. The company is already using 16 of the 40 767 widebody jets it's leasing from Boeing. The Kentucky location, which is near UPS's major hub, puts Amazon's fleet near several top cities. Amazon shares, up nearly 10 percent this year, getting an additional lift in early trading.