Amazon to Establish An East Coast Hub for Supply Chain Operations in Virginia

RICHMOND—Governor Ralph Northam announced Amazon will launch a new cross-dock fulfillment center in Stafford County. Amazon will establish a 630,000-square-foot facility on the Northern Virginia Gateway site to serve as one of the company’s East Coast hubs. The new facility will be responsible for the beginning of a supply chain in which products from third-party vendors are sorted, repacked, and distributed to other Amazon distribution centers.

Virginia successfully competed with Maryland and North Carolina for the project. The facility is expected to be operational in the second half of 2022 and will add 500 new jobs to Amazon’s existing workforce of more than 27,000 full- and part-time employees in the Commonwealth.

“Virginia’s workers are making it possible for Amazon to continue growing in the Commonwealth,” said Governor Northam. “This new fulfillment center will create 500 well-paying jobs in Stafford County. We are proud that the Commonwealth is a thriving hub for Amazon’s supply chain and the home to the most impressive workforce in the nation.”

Amazon first launched its Virginia fulfillment operations in 2006 in Sterling. The company has grown its operations network to include more than 20 fulfillment and sortation centers, and delivery stations in the Commonwealth. Amazon selected Arlington for its second corporate headquarters in 2018, resulting in the creation of more than 25,000 jobs.

Amazon announced a robotics fulfillment center in Suffolk and a processing center (cross-dock) in Chesapeake in March 2020. In April 2021, the company announced another state-of-the-art robotics fulfillment center at Richmond Raceway in Henrico County. Amazon also launched a new delivery center in Stafford County in October 2021.

“Virginia’s strategic location, extensive infrastructure networks, and world-class port provide Amazon continued opportunities for growth in the Commonwealth, and we welcome this new cross-dock fulfillment center in Stafford County,” said Secretary of Commerce and Trade Brian Ball. “The facility will create 500 new jobs and play an important role in the company’s East Coast supply chain, further cementing Virginia’s role as a leading transportation and logistics hub.”

Over the last decade, Amazon’s investments have led to an additional $34 billion being contributed to Virginia’s economy and have helped create over 96,000 indirect jobs on top of Amazon’s direct hires—from jobs in construction and logistics to professional services. More than 42,000 small and medium businesses and independent authors in Virginia are selling to customers through Amazon’s online marketplace.

“Since 2010, we have created more than 27,000 jobs in Virginia in communities from Springfield to Norfolk, and we are proud to expand our operations with this Fredericksburg facility,” said Amazon’s Vice President of North America Customer Fulfillment Melissa Nick. “Virginia’s talented workforce has been vital to our ability to serve our incredible customers and provide great selection and fast Prime shipping speeds across the region.”

Amazon offers highly competitive pay and benefits. The company provides a starting wage of $15 an hour and offers full-time employees industry-leading benefits, including full health, vision, and dental insurance, 401(k) with 50 percent company match, up to 20 weeks paid parental leave, and Amazon’s innovative Career Choice program, which pre-pays 95 percent of tuition for courses in high-demand fields. Since the program’s launch, over 1,600 employees in Virginia have pursued degrees in game design and visual communications, nursing, IT programming, and radiology, among others. In addition, Amazon has pledged to invest $1.2 billion to provide 300,000 U.S. employees with upskilling training for in-demand jobs over the next four years. 

The Virginia Economic Development Partnership worked with Stafford County and The Port of Virginia to secure the project for the Commonwealth. Amazon is eligible to receive benefits from the Port of Virginia Economic and Infrastructure Development Zone Grant Program. Funding and services to support the company’s employee training activities will be provided through the Virginia Jobs Investment Program.

“Stafford County established the Centreport Area as a strategic logistics and distribution employment center and focused on attracting major brands,” said Stafford County Board of Supervisors Chair Crystal Vanuch. “This location provides its users with direct access to I-95, placing light industrial business traffic adjacent to Stafford Regional Airport. With five large Centreport properties currently in permits, construction, or opening, the plan’s success is its own reward, and we are proud that Amazon selected Stafford as the site for its cross-dock facility.”

“It has been rewarding in the last few years to see the long-term vision of Centreport come to life,” said Hartwood District Stafford County Supervisor Gary Snellings. 

“Amazon’s tremendous investment is representative of our work with developers and companies,” said Stafford County Director of Economic Development and Tourism John Holden. “I want to recognize the Peterson Companies, which had the vision and partnered with Stafford County to create the Northern Virginia Gateway site-ready location that Amazon selected.”

“Amazon is making significant investments throughout Virginia that are helping to drive job growth, fuel the economy, and move cargo through the Port of Virginia,” said Virginia Port Authority Chief Executive Officer and Executive Director Stephen A. Edwards. “This strategic decision to build a cross-dock fulfillment center in Stafford County capitalizes on the supply chain efficiencies and service delivery offered by this Mid-Atlantic location and the Port of Virginia. We value Amazon’s decision as we continue to grow our collaborative and beneficial relationship.”

“As a Virginia-based developer, Peterson Companies is proud to welcome Amazon as the lead tenant in our Northern Virginia Gateway project,” said President of Development of Peterson Companies, the developer of Northern Virginia Gateway, Taylor Chess. “At 1.9 million square feet, Northern Virginia Gateway is one of the largest shovel-ready industrial/logistics sites on the I-95 corridor between Richmond and Washington, D.C. with the ability to accommodate tenants up to 1 million square feet. We look forward to working with the Virginia Economic Development Partnership and Stafford County to attract even more businesses and jobs to the region.”

“I am very pleased by Amazon’s decision to expand its operations into Stafford County,” said Senator Richard Stuart. “This is a testament to the region’s talented workforce, business-friendly policies, and unique geographic location along Interstate 95, allowing for reliable service to the entire U.S. Mid-Atlantic region. I sincerely appreciate the hard work and dedication that the Virginia Economic Development Partnership, Stafford County Board of Supervisors, and The Port of Virginia have invested in bringing increased opportunity to this community.”

“I welcome Amazon to the 88th District,” said Delegate Mark Cole. “Not only will this be a boost for Virginia's economy, but it will also be a significant increase in local jobs, allowing people to work where they live and spend less time commuting.”