Amazon and NY Port Authority scrap Newark Airport deal

Amazon.com Inc. and the Port Authority of New York and New Jersey scrapped plans for a new air cargo facility at Newark Liberty International Airport (EWR), a project that local activists had criticized.

“Unfortunately, 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,” Port Authority of New York and New Jersey Chief Operating Officer Huntley Lawrence said in a statement.

In August 2021, Amazon’s cargo airline launched plans to spend $125 million to transform two existing buildings at the airport. The agency was set to receive $157 million in rent over a 20-year lease and an upfront payment of $150 million.

Newark and Elizabeth, New Jersey residents opposed to the proposal said it would impact the surrounding communities that are already being affected by air pollution and associated health-related issues like asthma from airport and port emissions.

Opponents also decried the potential loss of high-paying union jobs. Last year, New Jersey Governor Phil Murphy had said the project would create 1,000 jobs.

“The growth of air cargo and the redevelopment of airport facilities in a manner that benefits the region as well as the local community remain a top priority of the Port Authority. Moving forward, the Agency will examine options and determine the best future utilization of these cargo facilities,” Lawrence said.

“After months of good faith negotiations with the Port Authority of New York & New Jersey, we’re disappointed to report that we’ve been unable to reach a final deal for the regional air hub at Newark Liberty International Airport,” Amazon spokesperson Maria Boschetti said in a statement. The company sees continued investments in the state, she added.