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            october 18, 2019

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Busworld 2019


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Amazon to construct major cargo complex at Lakeland Linder airport


Amazon is to build a 285,000-square-foot cargo complex at Lakeland Linder International Airport in Florida after signing a 20-year contract with airport authorities, according to Shipping Gazette.
Lakeland Linder International Airport director Gene Conrad said Amazon will pay the city US$80,000 a month to lease 47.2 acres, with an option to renew the lease three times at 10 years each, for a total of 50 years. The company will also pay the airport 85 cents per 1,000 pounds of cargo landed at the airport, and a three-cent surcharge per gallon of fuel.
Mr Conrad estimated the city will receive $66.7 million in revenue during the first 20 years of the lease. Half of the total proceeds is expected to be generated by the monthly lease payments.
"Those are very conservative numbers as far as what we're showing, as we're only showing 10 departures a day - which we believe is going to grow over time," Mr Conrad was quoted as saying in a report by The Ledger, Lakeland, Florida.
The airport director also anticipates that Amazon will activate at least one of the three 10-year extensions built into their lease. If so, it will generate another $45.1 million in revenue.
To uphold its end of the deal, the airport is expected to upgrade the landing systems at the airport, add five fuel tanks and improve one of the runways in preparation for Amazon's arrival. The projects have an estimated cost of $44.9 million.
Landing the Amazon deal has also been a major influence in helping the airport move forward with its long-term plan to upgrade its runways, according to Mr Conrad. Lakeland Linder has a 20-year master plan that aims to expand the current runway, add a parallel runway to the existing one, and build out its terminals, hangers and parking.

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