The Port Authority of New York and New Jersey and Amazon have ended a US$432 million deal for the e-commerce giant's air freight hub proposal at the Newark Liberty International Airport.

The Port Authority, which owns the airport, announced that both parties ended the negotiation for the air cargo hub without specifying what led to the breakdown of talks.

"On August 5, 2021, following a publicly advertised request for proposals and the submission and evaluation of proposals, the Board of Commissioners authorized the Executive Director to enter into exclusive negotiations for a lease with Amazon for the development of existing cargo buildings at Newark Liberty International Airport," said Huntley Lawrence, chief operating officer, Port Authority of New York and New Jersey.

"Over the past year, the Port Authority and Amazon have engaged in good-faith negotiations. 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," he added.

The port authority chief explained that moving forward, the agency will "examine options and determine the best future utilization of these cargo facilities."

"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," Lawrence added.

The bistate agency and Amazon in its announcement in August last year said they were negotiating a 20-year lease to repurpose two cargo buildings at Newark Airport which among others would help speed shipping times for consumers across the region.