Amazon has announced plans to build a centralized air hub at Cincinnati/Northern Kentucky International Airport (CVG) to support its fleet of Prime Air cargo planes. The on-line retailer says the new site will help meet demand from Amazon Prime members for fast, reliable delivery. Some observers see the company ultimately competing head-on with express delivery giants FedEx, DHL and UPS that Amazon used to rely on.

The reported $1.5bn investment is expected to create more than 2,000 new jobs at the site.

Last year, Amazon entered into agreements with Atlas Air and ATSG to lease 40 dedicated cargo airplanes to support Prime members with fast, free shipping. The first branded aircraft – a Boeing 767-300 dubbed Amazon One – was unveiled in Seattle in August last year.

Today, 16 of those planes are in service. Amazon’s Prime Air hub at CVG will support Amazon’s dedicated fleet of Prime Air cargo planes by loading, unloading and sorting packages.

CVG is currently the eighth-largest cargo airport in North America, based on FAA statistics. It is already home to DHL's North American hub — one of three global “Super Hubs” from which DHL Express operates.