Date: Apr 23, 2014
Press Release Number: 84-2014
The Port Authority Board of Commissioners today approved a targeted incentive program to boost auto business at the Port of New York and New Jersey, the largest port for the import and export of new and used automobiles in the country. The five-year program is designed to attract new automotive manufacturers and to provide incentives to existing ones to increase automobile volumes through the Port.
Under the program, manufacturers that are new to the harbor will receive a discount worth 50 percent of the charge to use the Port Authority's wharves for every eligible vehicle -- defined as an individual automobile or truck -- that they import or export through the Port of New York and New Jersey during the first year they participate in the incentive program.
Existing manufacturers can also participate in the program and would receive a financial incentive for all eligible vehicles that exceed the automotive manufacturer's 2013 volume of eligible vehicles shipped through the Port by more than 3 percent, the baseline growth rate the port has projected. For example, if manufacturer A shipped 10,000 eligible vehicles in 2013, for every eligible vehicle that they ship above 10,300 (which is 10,000 plus 3 percent), they would qualify for the incentive for each eligible vehicle they ship above the threshold.
"Our port is the nation's leader for new vehicles from all over the world, and we want to stay on top," said Port Authority Executive Director Pat Foye. "Our incentive program will seek to attract new auto manufacturers here and to retain existing ones to ensure the long-term success of the port's valuable auto business."
"Maintaining a competitive port is critical to job creation and the economic vitality of the region," said Port Authority Deputy Executive Director Deb Gramiccioni. "This program will ensure that our port continues to attract top quality auto manufacturers that serve the tens of millions of consumers in the New Jersey-New York region."
In calendar year 2015, new and existing automotive manufacturers will need to exceed their previous year total of eligible vehicles by one percent to receive the incentive. The threshold for the remaining years of the program (2016-2018) will be reset using the same protocol established for the second year (2015) of one percent higher than the prior year's volume or threshold of eligible vehicles.
The Port of New York and New Jersey is the largest importer and exporter of automobiles in the United States thanks in part to its strategic location and proximity to the nation's largest consumer market. In 2013, the Port moved more than 745,000 new and used vehicles; however this is down from the peak in 2007 of over 1 million vehicles shipped. By incentivizing automobile manufacturers to utilize the Port of New York and New Jersey, it will increase automobile shipping and generate additional revenue for the Port Authority.
Port Authority of New York and New Jersey
Founded in 1921, the Port Authority of New York and New Jersey builds, operates, and maintains many of the most important transportation and trade infrastructure assets in the country. The agency's network of aviation, ground, rail, and seaport facilities is among the busiest in the country, supports more than 550,000 regional jobs, and generates more than $23 billion in annual wages and $80 billion in annual economic activity. The Port Authority also owns and manages the 16-acre World Trade Center site, where construction crews are building the iconic One World Trade Center, which is now the tallest skyscraper in the Western Hemisphere. The Port Authority receives no tax revenue from either the State of New York or New Jersey or from the City of New York. The agency raises the necessary funds for the improvement, construction or acquisition of its facilities primarily on its own credit. For more information, please visit http://www.panynj.gov.