THE PORT AUTHORITY OF NY & NJ

Press Release Article


PORT AUTHORITY BOARD APPROVES LEASE EXTENSIONS FOR NEW YORK SEAPORT TERMINALS

Date: May 28, 2009
Press Release Number: 63-2009

To prepare for projected future growth in the region’s maritime industry, the Port Authority’s Board of Commissioners today approved two agreements with New York City that will allow the agency to promote the operation and future development of two major New York maritime facilities - the Howland Hook Marine Terminal on Staten Island and the Brooklyn Cruise Terminal.

The Board approved a 35-year lease extension with New York City for the 202-acre Howland Hook facility, extending the existing lease through June 30, 2058. This extension enables the Port Authority to maintain long-term strategic control of a container terminal within the port, to realize the benefit of previous investments, and commit to making a capital investment of $110 million to benefit the Howland Hook Marine Terminal.

A separate lease agreement approved by the Board provides for the Port Authority to enter into a new lease with the New York City Economic Development Corporation for the letting of Piers 11 and 12 in the Brooklyn-Port Authority Marine Terminal for a 20-year term for the operation of a passenger cruise terminal, with an option to extend the lease with three extension options through 2058. The Port Authority owns the piers and leases them to the City. The City opened the Brooklyn Cruise Terminal on Piers 11 and 12 in 2006.

Port Authority Chairman Anthony R. Coscia said, “This action demonstrates our confidence in the port as an engine for jobs and economic growth. Although our maritime business has flattened during the national recession, we know the tide will turn and business will return, creating hundreds of thousands of jobs and providing the region with a major economic lift.”

Port Authority Executive Director Chris Ward said, “During the economic downturn, our oceanborne cargo volumes are down, but we must prepare for the future growth we know will come in the not too distant future. These lease extensions ensure that our port will grow, maintaining its world-class reputation and generating jobs and economic activity for years to come.”

In 2008, the Brooklyn Cruise Terminal handled 61 cruise vessels carrying approximately 282,000 passengers. The New York City Economic Development Corporation also plans to enter into a long-term sublease with Phoenix Beverage for a warehousing and distribution operation at Pier 11.

The Port Authority of New York and New Jersey operates many of the busiest and most important transportation links in the region. They include John F. Kennedy International, Newark Liberty International, LaGuardia, Stewart International and Teterboro airports; AirTrain JFK and AirTrain Newark; the George Washington Bridge and Bus Station; the Lincoln and Holland tunnels; the three bridges between Staten Island and New Jersey; the PATH (Port Authority Trans-Hudson) rapid-transit system; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hook Marine Terminal on Staten Island; the Port Authority Auto Marine Terminal; the Brooklyn Piers/Red Hook Container Terminal; the Greenville Yard-Port Authority Marine Terminal; and the Port Authority Bus Terminal in midtown Manhattan. The agency also owns the 16-acre World Trade Center site in Lower Manhattan and is a partner in the Access to the Region’s Core tunnel project.