JFK Airport's New $270M Cargo Hub Opens Amid Customs Clampdown

Yahoo

25-04-2025

John F. Kennedy International Airport has opened a new $270 million cargo-handling facility as part of the transportation hub's push to modernize and consolidate logistics operations.
As the first new cargo facility at the Queens, N.Y. airport built in 25 years, the Building 260 cargo center will combine operations from four separate cargo zones into a single location in an effort to reduce congestion and open up space for future development.
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Building 260 is expected to increase total cargo capacity at JFK by roughly 25 percent, in a move aimed at further augmenting the airport's role as a premier global trade hub, particularly when it comes to high-value cargo such as pharmaceuticals, electronics and perishables.
The Port Authority of New York and New Jersey, which also oversees the Port of New York and New Jersey, spearheaded the project in a public-private partnership with transportation real estate investment firm Realterm and air cargo logistics provider Worldwide Flight Services (WFS).
WFS, JFK's primary cargo handler, will operate the 350,000-square-foot facility spanning 26 acres. Construction for the project began in 2021, with the site replacing two facilities demolished that year.
Already the eighth-busiest cargo airport in the U.S. and 21st globally, JFK also holds the distinction as the nation's busiest entry point for low-value international e-commerce packages, handling about 25 percent of all such incoming shipments.
The cargo hub is complemented by a new 100,000-square-foot centralized examination station located at another WFS-operated facility at the airport that opened in February. All shipments requiring inspection will need to be transported to the station, which is staffed by U.S. Customs and Border Protection (CBP) officers.
The opening of both facilities is timely given the ongoing changes to customs regulations for U.S. imports under the Trump administration.
The de minimis provision, which previously exempted packages worth less than $800 from duties, is going away May 2 for imports from China. This is likely to create a logjam now that low-value packages will be subject to more scrutiny at customs processing points.
Backlogs have already started at cargo facilities throughout the U.S. due to another alteration that went into effect April 5, in which the formal entry processing threshold was lowered from $2,500 to $800 per package. In response to the flurry of high-value packages entering the U.S. that fall into the new threshold, DHL had to indefinitely suspend acceptance of consumer packages above $800 at customs.
'By replacing outdated facilities with a modern cargo center, we're preparing for the future and improving efficiency and sustainability at JFK,' said Port Authority executive director Rick Cotton in a statement. 'JFK plays a central role in global commerce, and this modern consolidated cargo center strengthens its position as a key gateway for high-value goods and international trade.'
The new facility is expected to reduce wait times for truck drivers and minimize queuing outside the facility. It will include an advanced truck dock management system designed to optimize the flow of goods in and out of the facility by using real-time scheduling, automated check-ins and digital communication between drivers and dock operators.
The system is designed to automatically match each truck with the most efficient doors of entry based on the size, type and contents of each delivery, which ideally would maximize throughput and reduce delays. It also ensures that trucks arrive only when a dock is available, which should help cut the wait times.
This coordination is built to ensure fewer trucks are on the road or waiting in nearby neighborhoods, leading to additional benefits like reduced noise, emissions and traffic congestion for the surrounding community.
Furthering the Port Authority's commitment to reach net-zero carbon emissions by 2050, the new cargo-handling center features electric forklifts, electric vehicle chargers and an automated unit load device system to optimize power usage.
The new consolidated cargo-handling center also includes 3,000 square feet of cooler space for goods requiring 2 to 8 degrees Celsius and 15 to 25 degrees Celsius environments, making it JFK's first dedicated on-airport facility for temperature-sensitive pharmaceuticals and perishables.
JFK Airport, like many of its contemporaries, has handled an influx of cargo in the wake of the acceleration of e-commerce throughout the Covid-19 pandemic. In 2024, JFK handled 1.67 million tons of cargo, a 5 percent increase from 2023 and 25 percent more than in 2019.
The JFK air cargo sector supports more than 93,000 direct and indirect jobs and generates $11.4 billion in economic activity annually. The center is expected to generate 100 permanent new jobs, as well as more economic development opportunities.
Additionally, the project exceeded its goals for participation by minority and women-owned business enterprises, with more than 42 percent of construction contracts awarded to these firms.