Amazon to develop air cargo facility at Newark Airport

Amazon.com Inc. struck an agreement with the Port Authority of New York & New Jersey to develop an air-cargo facility at Newark Liberty International Airport.

Amazon Global Air, the company’s cargo airline, plans to spend $125 million to transform two existing buildings at the airport, according to a Port Authority news release. The agency will receive $157 million in rent over a 20-year lease and an upfront payment of $150 million. The lease is expected to take effect later this year, the Port Authority said.

New Jersey Governor Phil Murphy said the project would create 1,000 jobs.

“With this new partnership, Newark will continue to be a global leader in logistics,” Murphy said in a news release. “This new e-commerce hub will provide needed revenue to the Port Authority while also bringing new jobs to our state.”

The lease is subject to final negotiation. Amazon.com’s shares rose 0.6% to $3,375.99 Thursday.