Amazon Fulfillment

[stile99]

I understand the sentiment, but USPS vs FedEx vs UPS vs Amazon private delivery couldn't possibly be more relevant to a discussion about an Amazon fulfillment center. Especially with a sorting center up the street and plans for a private delivery center in the mix as well.

[btmec]

People are asking why build near Will Rogers. Well as someone in the commerical aviation business; I'm sure they want runway access for their new fleet of Amazon aircraft.

[Pete]

Today, the Airport Trust approved a ground lease for 69.456 acres to the company that will build the fulfillment center for Amazon, then lease it back to them.

Terms are:
Revenue Annual ground rental rate of $242,039.26, subject to escalations of $0.006 (7.5%) per square foot every 5 years thereafter during the primary lease period.
40 years with 3 five-year options to extend.


This project could be starting very soon.

[chuck5815]

So the improvements on the property revert to the Airport Trust upon the expiration of the ground lease?

[Pete]

So the improvements on the property revert to the Airport Trust upon the expiration of the ground lease?

Yes, which is typically the way ground leases are structured.

[catch22]

Yes, which is typically the way ground leases are structured.

The airport does not want land getting out of the control of the airport. While land isn’t a problem now, in 50 years OKC airport might be much larger than it is today and require expansion. It’s easier to move tenants on land you own than to buy land back from people on eminent domain.

[Pete]

^

It's why land owners do ground leases in the first place.

To maintain control of the land.

[Zuplar]

Do we need the exact parcel? I’ve seen both 89th and Portland and 104th mentions previously in announcements so I’m curious which one it will be.

Does seem like once Amazon gets approval they tend to move very fast.

[Pete]

Do we need the exact parcel? I’ve seen both 89th and Portland and 104th mentions previously in announcements so I’m curious which one it will be.

Yes, I included this with the very first story. The facility will be closer to 89th than 104th.

BTW, the Oklahoma is just trying to duplicate our reporting and several things they have written are completely wrong. I'll have more on that later.

[Zuplar]

Yes I recall that, just seemed a little ambiguous to me. Wasn't it sure if it was actually going to be the lot on the southwest corner or further south of 89th.

Funny you mention that about that other news source, I had thought about bringing that up, but like I had stated before I hate to give them anymore air time.

[Pete]

This will be almost 70 acres... The entire complex will run from about halfway between 89th and 104th to the north.

The exact address will be 9201 S. Portland.

There are plans to widen 89th street at that location.

[tfvc.org]

Are they going to utilise the runways? Where are they storing the planes?

[Pete]

Are they going to utilise the runways? Where are they storing the planes?

No, there will be no runway access. All trucks.

[catch22]

Amazon is using air to connect product from region to region. For example goods manufactured or stored on the west coast are forwarded across the country to the east coast, the plane returns to the west coast with east coast items.

Okc isn’t ready for their network because it would have nearly zero outbound volume. All inbound. They would fly the plane back empty. We are better served with a truck from DFW.

[jn1780]

People are asking why build near Will Rogers. Well as someone in the commerical aviation business; I'm sure they want runway access for their new fleet of Amazon aircraft.

The airport has very little to do with the location. The whole point of facilities like this is to avoid airfare.

[stile99]

The airport has very little to do with the location. The whole point of facilities like this is to avoid airfare.

Every coin has two sides. While yes, the point is indeed to have product in several locations to avoid having to fly it to the destination or near it, the warehouse isn't filled by magical elves while the cobbler sleeps.

https://en.wikipedia.org/wiki/List_o...nd_warehousing

"Fulfillment centers are located in the following cities, often named after an International Air Transport Association airport code."

This ain't Amazon's first rodeo.

[catch22]

PrimeAir doesn’t even serve Denver. I don’t think any short range plan includes OKC flights.

[chuck5815]

Apparently Jeff is raising the price of a Prime Membership from $99 to $119 per year. I could see more than a few folks cancelling at this point, especially if they are going to build a distribution center in almost everyone’s backyard.

[HOT ROD]

I have cancelled. you can still get most items for free shipping anyway - at least here in Seattle. ....

[jn1780]

Every coin has two sides. While yes, the point is indeed to have product in several locations to avoid having to fly it to the destination or near it, the warehouse isn't filled by magical elves while the cobbler sleeps.

https://en.wikipedia.org/wiki/List_o...nd_warehousing

"Fulfillment centers are located in the following cities, often named after an International Air Transport Association airport code."

This ain't Amazon's first rodeo.

I don't know how every third party supplier operates, but I can tell you the general rule of thumb is that almost every item that sits in this facility is trucked in. No magical elves needed. Just underpaid workers and robots that unloads inbound trucks. I'm sure Amazon flies in some items, but those would go straight to the sorting facility.

In Amazon's early day's they probably did have to rely on air freight more often so its not surprising they would rely on an airport code. Plus, why invent a new city identification system when there is already one well known in the logistical community?

[josh]

Every coin has two sides. While yes, the point is indeed to have product in several locations to avoid having to fly it to the destination or near it, the warehouse isn't filled by magical elves while the cobbler sleeps.

https://en.wikipedia.org/wiki/List_o...nd_warehousing

"Fulfillment centers are located in the following cities, often named after an International Air Transport Association airport code."

This ain't Amazon's first rodeo.

The airport code has really nothing to do with the airport itself. It’s just a origin and destination slic/code. Fulfillment centers are stocked via ground trailers from other distribution centers.

[stile99]

Apparently Jeff is raising the price of a Prime Membership from $99 to $119 per year. I could see more than a few folks cancelling at this point, especially if they are going to build a distribution center in almost everyone’s backyard.

I honestly wish I still had Prime so I could cancel again. I canceled due to some really bad service from "the most customer-centric company", and other than one order, really haven't noticed. I've ordered from Jet a couple times, still ordered from Amazon and other than that one order (technically it was two, just one was placed a couple days after the other, so they decided to merge them...which meant shipping the first order late). I'm not sure how well this will fly, but it'll sure shut up the "Amazon is a monopoly" people.

[BBatesokc]

Not difficult to get a student membership - just need a student email address. We've had one for years. It's being bumped to $59/yr.

If it was just 'shipping' then I could see canceling due to the price increase, but Prime offers more than that and I think it's still a good value.

We use the music and video streaming benefits almost daily.

[OKCRT]

Not difficult to get a student membership - just need a student email address. We've had one for years. It's being bumped to $59/yr.

If it was just 'shipping' then I could see canceling due to the price increase, but Prime offers more than that and I think it's still a good value.

We use the music and video streaming benefits almost daily.

Yes same here. Watch lots of stuff on Prime. But also order lots of stuff on Amazon. I don't know if I will cancel or not yet but since we have to pay taxes on orders now it's not as good of a deal as it was when I orig. signed on. It seems to me like they are making plenty of profits so I may just cancel since I can get along without it. Thinking about it for a while.

[btmec]

The airport has very little to do with the location. The whole point of facilities like this is to avoid airfare.

What is your position at Amazon? You have the insider information about their current and future plans. You will be of great value in this thread.