Kuehne+Nagel enters long-term collaboration with Amazon
The agreement covers AWS infrastructure logistics, including facility construction, equipment deployment, maintenance, modernisation and expansion projects.
Kuehne+Nagel has entered into a long-term strategic collaboration with Amazon to expand their existing business relationship and develop new opportunities across services for Amazon and its affiliated companies.
The collaboration includes logistics services for Amazon Web Services (AWS) infrastructure, covering construction and commissioning of facilities, ongoing maintenance and modernisation, as well as expansion projects.
The agreement is supported by a call option on existing Kuehne+Nagel shares. The option can be settled in cash or, at Amazon’s choice, in shares, with vesting linked to commercial milestones and services over a period of up to seven years. Kuehne+Nagel has also arranged for a third-party financial institution to carry out hedging transactions in its shares to support the arrangement.
Kuehne+Nagel said the collaboration will build on its existing relationship with Amazon and strengthen its service offering for the company and its affiliates. The logistics company said its global network, digital capabilities and supply chain expertise will support Amazon’s changing business requirements and growth plans.
The announcement follows Kuehne+Nagel’s recent expansion of specialised logistics infrastructure. Earlier in September, the company opened a 3,505 sq m healthcare logistics centre at Frankfurt Airport for temperature-sensitive pharmaceutical and healthcare products.
The HealthChain-certified facility has around 2,500 sq m of controlled room temperature storage at +15°C to +25°C, more than 500 sq m of cold chain storage at +2°C to +8°C and ultra-low temperature freezers for products stored at -70°C. It also has direct tarmac access and specialised pharmaceutical truck handling facilities.
The Frankfurt investment followed the addition of Frankfurt to Kuehne+Nagel’s Boeing 747-8F freighter network and the launch of the Frankfurt-Atlanta Cool Corridor for temperature-sensitive healthcare shipments. The company’s global network now includes more than 270 HealthChain-certified locations.
Kuehne+Nagel CEO Stefan Paul said the long-term collaboration with Amazon will focus on scale, innovation and customer value, adding that the company’s global network and supply chain expertise can support Amazon’s evolving business needs.