HEBRON, Ky. — The construction of a $20 million air cargo warehouse at Cincinnati/Northern Kentucky International Airport (CVG) may create more than 200 jobs and continue to spur the region’s growth as one of the top shipping hubs in the country.
What You Need To Know
- Burrell Aviation is building a $20 million air cargo warehouse at Cincinnati/Northern Kentucky International Airport
- CVG is the seventh-largest shipping cargo airport in North America
- Projections call for the creation of more than 100 temporary construction jobs when the project breaks ground next year, and up to 100 more positions to handle day-to-day operations once complete
Officials from CVG announced Tuesday that Burrell Aviation Cincinnati, LLC, has agreed to build an 80,000-square-foot facility on approximately 4.5 acres of the airport’s campus.
The plan calls for Burrell Aviation Cincinnati, LLC — a subsidiary of Burrell Aviation and Colorado-based The Burrell Group — to make a minimum capital investment of $20 million in the project. The facility will have office space, truck docks and parking lot on the northern part of CVG. It will also have airside access, meaning it will face the runway, according to a spokesperson for Burrell Aviation.
“We appreciate the opportunity to assist with a significant expansion of CVG’s current cargo operations and to partner on such an important project with the airport, which is now one of the fastest growing in the country due to the leadership of (CVG CEO) Candace McGraw and her team,” said Dan Burrell, The Burrell Group’s founder and executive chair.
The number of commercial passenger flights taking off from the Hebron, Ky., has continued to soar over the years. But CVG is also the seventh-largest cargo airport in North America. It’s home to Amazon Air’s primary United States hub and DHL Express’ Global "Superhub" for the Americas.
Last year, the airport demolished old cargo facilities to make way for new infrastructure for cargo carriers and freight forwarders. Burrell Aviation develops, operates and invests in next-generation supply chain infrastructure at airports across the country with the goal of attracting sub-tenants.
“A very prominent” cargo handler will serve as the subtenant at CVG, according to Roger Wilson, Burrell Aviation’s chief operating officer.
While he couldn’t name on Tuesday, Wilson said the client is “one of the leading handlers in the U.S.” He mentioned his company would likely announce the subtenant, as well as construction partners, in the next week or so.
McGraw stressed that the airport’s long-term strategic plan focuses on diversifying cargo operations and expanding general cargo handling capacity. She described the Burrell Aviation site as a flagship facility.
As part of the deal, Burrell Aviation will cover all pre-development and construction costs, except for $3.5 million from CVG to cover some site work, Wilson said. He noted those funds came from a matching grant previously awarded to the airport.
CVG’s financial benefits will come from rental fees from Burrell Aviation throughout the term of the lease. They’ll also collect throughput fees, which is a payment made to airports for each container that passes through its cargo facility.
“With ample demand, we know this facility will act as a catalyst for continued cargo growth at CVG,” she added.
Burrell Aviation's construction team will cater the design of the cargo facility to the unique needs and capacities of its subtenant, Wilson said. He stressed that his firm’s commitment to using local construction teams.
The project partners are seeking funding from the Kentucky Product Development Initiative for site development activities that could support this development. It’s a program through the Kentucky Economic Development Finance Authority.
Kentucky Gov. Andy Beshear called the investment by Burrell Aviation “welcome” by the state. He referred to the Bluegrass State as a leader in the air cargo industry largely because of CVG. The airport has a $6.8 billion annual impact on the local economy.
Beshear emphasized his willingness to work with Burrell Aviation and the airport to “make this project a success.”
Construction will require between 100 to 115 temporary construction jobs, Wilson said. He expected operations at the facility to require another 80 to 100 permanent positions once complete.
Ohio Gov. Mike DeWine believes the project is good for the entire greater Cincinnati region. He said the new jobs are a plus but also stressed that the project enhanced CVG’s status as “one of the most important airports in the country.”
As of Tuesday, they're projected to put shovels in the ground “a year from today,” Wilson said.