Amazon and N.Y. Port Authority Fail to Reach Newark Airport Deal

Skylar Woodhouse, Bloomberg News

A United Continental Holdings Inc. airplane taxis outside the company's terminal at Newark Liberty International Airport (EWR) in Newark, New Jersey, U.S., on Wednesday, April 12, 2017. United Airlines is under fire for forcibly removing a passenger from a plane in Chicago shortly before departure to make room for company employees, an incident which demonstrates how airline bumping can quickly veer into confrontation. , Bloomberg

(Bloomberg) -- 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, 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.

“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.

Amazon.com didn’t immediately respond to requests seeking comment.