Plans by Amazon to substantially expand its presence in the New York area have been abandoned for the second time.
Amazon canceled plans to build a second headquarters in New York after facing a lot of criticism. The company was unable to complete a deal for a cargo hub at the airport.
The project, which relied on a 20-year lease worth hundreds of millions of dollars, attracted opposition after the Port Authority revealed it.
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.
Advocacy groups and unions said they wouldn't support the lease unless Amazon made concessions that included labor agreements and a zero-emissions benchmark.
If Amazon wants to grow in New Jersey, it will have to do it on its terms, according to the director of Make the Road New Jersey.
In a statement, Amazon expressed disappointment but said it was proud of its presence in New Jersey and would continue to invest there.
If the Port Authority awards the lease to another company, more than 1,000 jobs could still be created. The project was bid on by two companies.
The growth of air cargo and the redevelopment of airport facilities in a way that benefits the region as well as the local community remains a top priority of the Port Authority.
The ability of Amazon to deliver packages efficiently in the Northeast may be the bigger long-term impact. According to an industry consultant, Newark was the obvious choice. On the doorstep of New York City is where it is located.
If Amazon wanted to support the growing package volume, it could look for other airports in the region.
There was opposition to the project because of the company's position in the state. According to a report produced by groups seeking to block it, the number of Amazon warehouses in New Jersey increased from one in 2013 to 49 in 2020. Adjusting for inflation, the average wage for those workers fell to about $44,000 per year from over $53,000 per year.
One of the more unionized states is New Jersey, while Amazon does not support unionization efforts.
According to Amazon, the average starting pay is more than $18. In New Jersey, the median hourly wage was $23. Full health coverage for full-time employees as soon as they start working is one of the company's benefits.
The board of the Port Authority voted to approve the lease with Amazon in August. According to the minutes of the meeting, the authority expected the lease to take effect in November.
Kim Gaddy is the executive director of the South Ward Environmental Alliance which focuses on environmental issues affecting Newark residents.
Amazon agreed to invest $125 million in renovations of two buildings at the airport and to pay the Port Authority more than $300 million over 20 years.
The groups led by Ms. Cullinane and Ms. Gaddy started coordinating their opposition. The groups staged rallies and a march after circulating petitions that collected thousands of signatures.
After the November timetable for the lease was passed, the project seemed to stall.
A spokeswoman for the governor said in March that the governor encourages anyone doing business in the state to work with labor partners in good faith. On Thursday, the governor's office refused to comment. The election victory of the Amazon Labor Union at a Staten Island warehouse caused other politicians in the state to become skeptical.
In order to move products through its own network, Amazon has opened air hubs. When a customer wants a product that isn't in a nearby warehouse, it will fly the product to meet its shipping promises.
During the Pandemic, its operations expanded at a rapid pace. Andy Jassy told investors in May that they doubled their capacity in just 24 months.
In April, the company posted its first quarterly loss in three years. Amazon has pulled back on some investments Mr. Jassy said that they are trying to defer building activity on properties where they don't need the capacity yet.
All Rights Reserved © 2024
