The Port Authority approved a lease with JFK Air Cargo , LLC.( Air Cargo) at JFK Airport at the Board of Commissioners meeting on April 25, 2019. This new cargo facility at the North Cargo area of JFK will be the second facility in addition to the Aeroterm/WFS facility approved last year. Both buildings will grow the more efficient handling of JFK cargo adding more than 600,000 sq.feet of new cargo space. The Port authorized Executive Director Rick Cotton to enter into this lease agreement with Air Cargo for approximately 16.2 acres of land at JFK for a term of 31 years and providing for the development of a new state-of-the-art cargo handing facility by Air Cargo, to be located at former hangars 3,4 and 5 site at JFK.
The proposed lease to Air Cargo will begin in June 2019, and continue through 2050. It is expected that the company will invest over $70 million in the new structure, improvements and ground enhancements of the project. Rental revenue is expected to be close to $150 million over the term of the project. Port has authorized Air Cargo to sublease to appropriate tenants to date none have been revealed. Air Cargo is comprised of both investors and construction companies that are very familiar with airport cargo facilities which they have been involved in at several other airports.
Port Director of Aviation Huntley Lawrence said, “ The cargo was an area needing improvement. It called for a strategic focus on modernizing and consolidating facilities in order to insure development of a world class and modern, efficient airport.” Lieutenant Governor Kathy Hochul remarked. “This new cargo facility will spur additional private investments and position JFK Airport as a major cargo handler. The upgrades to JFK Airport build on our efforts to improve the transportation network of this world-class facility, enhancing the traveler experience, increasing tourism, and growing the economy.”
The development of this area is good news to those in the JFK cargo community which say that cargo business has moved elsewhere because of the lack of efficient facilities and congestion in the current cargo movement matrix.
Accordoing to Rock Cotton, Executive Director of the Port there is more to come for the cargo developlemt area.
