Amazon's Teterboro Airport: A Private Jet Haven?

Amazon has been expanding its operations in New Jersey, with a focus on speedy deliveries in the densely populated New York metropolitan area. The company has leased a large warehouse in Teterboro, which is located near Teterboro Airport, as well as other major highways, allowing for quick deliveries. The Teterboro warehouse is part of Amazon's plan to expand its air cargo fleet and compete with FedEx and UPS in logistics. With its air fleet, Amazon aims to have greater control over its packages and offer faster deliveries to its customers.

Amazon's Teterboro warehouse

The Teterboro warehouse is easily accessible, situated in the heart of the Meadowlands and offering quick access to New York City and a network of highways. The property spans 616,992 square feet and features clear heights of up to 32 feet. It is currently undergoing an $80 million transformation into a state-of-the-art sortation centre, with over 14 miles of automated conveyor lines. Once completed, the facility is expected to handle an estimated 5,000 packages per day, employing 1,600 people working around the clock.

The Teterboro location is part of Amazon's strategy to place fulfilment centres close to customers, reducing delivery times. This particular centre is designed to service New York City's five boroughs, Northern New Jersey, Southern New York State, and Western Connecticut. The company's expansion in New Jersey is aimed at meeting increasing customer demand and taking advantage of the state's densely populated areas.

The Teterboro warehouse offers a range of employment opportunities, from entry-level positions to managerial roles. However, reviews from former and current employees vary. While some appreciate the pay, opportunities for advancement, and work-life balance, others criticise the workplace culture, management, and strenuous physical work. Overall, the Teterboro warehouse is a vital component of Amazon's operations, enabling the company to provide speedy deliveries and meet customer expectations.

Amazon's expansion in New Jersey

Amazon has been rapidly expanding in New Jersey since it entered the state in mid-2014. The company has invested over $20 billion in the state and, as of 2020, it had created 49,000 full- and part-time jobs there. In 2021, Amazon announced it was hiring more than 8,000 new employees in New Jersey, with roles offering an average starting wage of over $18 per hour.

In 2016, Amazon continued its expansion in the state with a new warehouse in Teterboro. The company signed a 10-year lease for a 617,000-square-foot warehouse at 698 Route 46 West, which once housed Ford Motor Co. auto parts. This was the company's second lease in Bergen County, after it quietly leased a 75,000-square-foot warehouse in Moonachie the previous year.

Amazon's real estate footprint in New Jersey includes:

• 19 fulfillment and sortation centres
• 20 delivery stations
• 1 Amazon Fresh fulfillment centre
• 1 Prime Now fulfillment centre

In April 2024, Amazon Fresh opened its second location in New Jersey, bringing the total number of Amazon Fresh stores to 60.

In May 2022, it was reported that Amazon was seeking to reduce its warehouse footprint in New Jersey as part of a larger plan to sublease at least 10 million square feet nationally. However, the company stated that it was not considering layoffs at its warehouses related to the space reductions.

Amazon's air fleet

Amazon Air, also branded as Prime Air, is a virtual airline that exclusively transports Amazon packages. In 2015, Amazon began trial cargo runs out of Wilmington Air Park under the codename Project Aerosmith. In December of that year, the company announced it would be starting its own cargo airline to expand its capabilities.

In March 2016, Amazon acquired options to buy up to 19.9% of Air Transport Services Group's stock and began scheduled operations with 20 Boeing 767 aircraft. On January 31, 2017, Amazon announced that Amazon Air would make Cincinnati/Northern Kentucky International Airport its principal hub, and operations began on April 30, 2017.

Amazon Air's fleet includes Boeing 737, Boeing 767, and Airbus A330 aircraft, all operated by contracted partners. As of February 2024, the fleet consists of 78 aircraft, with plans to expand its A330 fleet to 10 aircraft. Amazon Air has also secured up to six million gallons of sustainable aviation fuel supplied by Shell Aviation and produced by World Energy.

In September 2022, a study by the Chaddick Institute found that Amazon Air had expanded its system by 5.8% without adding more warehouses. The study also showed that the company's carry capacity had increased, making it 14% and 23% as large as FedEx and UPS, respectively.

Amazon Air's primary function is to transport packages from distant fulfilment centres outside of Amazon's local ground network for a specific area. Once the order has been flown to the buyer's region, it may be transported to the regional Amazon Sortation Centre to be routed to a local Delivery Station or post office for last-mile delivery.

Amazon has a warehouse in Teterboro, which is across Route 46 from Teterboro Airport. However, it is unclear whether Amazon Air operates from this airport.

Amazon's Teterboro lease

Amazon has expanded its footprint in northern New Jersey by leasing a large warehouse in Teterboro. The e-commerce giant signed a 10-year lease for the 617,000-square-foot (or 619,000 according to another source) warehouse at 698 Route 46 West, which once housed Ford Motor Co. auto parts. The building is owned by TIAA Global Asset Management of New York City, which acquired the property in 2013 for $81 million, one of Bergen County's largest commercial real estate deals that year.

The Teterboro lease is Amazon's second in Bergen County. The company also quietly leased a 75,000-square-foot warehouse at 2 Empire Boulevard in Moonachie in 2015. Amazon has been tight-lipped about its North Jersey leases, although it is more open about other locations in the Garden State. The company entered New Jersey in mid-2014 with a 1.2-million-square-foot distribution center in Robbinsville, near Trenton. It also has a 1-million-square-foot center near the New Jersey Turnpike in Carteret and a warehouse in the Avenel section of Woodbridge, which it uses to deliver Amazon Fresh grocery orders in New York City and parts of New Jersey.

In April 2016, Amazon announced plans to open two more fulfillment centers in the state: a second site in Carteret and one in Florence in Burlington County. The additional sites will expand the company's New Jersey workforce from 5,500 to 7,500. The Teterboro lease is emblematic of the strong demand for warehouse space in North Jersey, with vacancy rates at historic lows and rents at their highest levels in years. Meadowlands warehouses are especially sought-after due to their proximity to New York City and a network of highways, facilitating the quick deliveries that consumers expect.

The Teterboro warehouse is strategically located across Route 46 from Teterboro Airport and a new Costco and Walmart. It is at the intersection of Route 46 and Route 17, with the latter offering quick access to Route 80. The building was constructed in 1954 and renovated in 2004 and 2005.

Amazon's Teterboro employees

The Teterboro fulfilment centre is a crucial part of Amazon's operations, specialising in storing, packing, and shipping a diverse array of products for the company's e-commerce business. With a focus on efficiency and speed, the centre ensures timely deliveries to customers across the region. The warehouse is strategically positioned near major transportation routes, including Route 46, Route 17, and Interstate 80, facilitating quick distribution to customers.

Employees at the Teterboro facility work in various roles, such as warehouse associates, fulfilment associates, scanners, supervisors, and managers. The work can be physically demanding, involving heavy lifting and long hours. While some employees appreciate the opportunity for advancement and the flexibility of the job, others have criticised the work-life balance, unorganised management, and challenging work environment.

The Teterboro location is expected to have approximately 1,600 employees working around the clock to handle an estimated 5,000 packages per day. The facility is undergoing an $80 million transformation to become a state-of-the-art sortation centre, playing a pivotal role in Amazon's "final mile" business model for same-day and next-day deliveries.

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