Two Firms Selected to Run Innovative Programs That Will Create
New Revenue to Reinvest in the Port Authority’s Transportation Facilities
The Port Authority today announced that two firms have been selected to lead the agency’s advertising and sponsorship programs. The programs, which will create new streams of revenue that will be reinvested directly in the agency’s facilities, were developed to secure revenue from non-toll and fare sources to help offset increased security costs.
Port Authority Chairman Anthony R. Coscia said, “The Port Authority always has made substantial investments in security, but since September 11, 2001, the cost of maintaining the highest levels of security has been enormous. In just the last three full calendar years, we have spent about $400 million per year on average, and in 2005, we expect to invest an additional $520 million on capital and operating expenses related to security.
“While we cannot ignore these needed investments in security, we also must identify new revenue sources to help defray these rising costs,” Mr. Coscia said. “That becomes even more important as we seek to implement our 10-year strategic plan, which calls for major transportation enhancements throughout the region that will costs billions of dollars to build.”
Port Authority Vice Chairman Charles A. Gargano said, “We will never compromise security. However, we also must remain fiscally responsible, and these advertising and sponsorship programs create an opportunity to tap into new revenue sources. In addition to defraying our increased security costs, these new programs will generate funding for continued enhancement of our customer service initiatives and expand our world-class transportation facilities. This is the next step in what we expect to be an exciting opportunity for both the agency and our private partners.”
Port Authority Executive Director Kenneth J. Ringler Jr. said, “In order to meet new financial challenges related to security and capital investments, the Port Authority undertook an agency-wide initiative that identified $150 million in operational efficiencies and established new and expanded revenue sources. The advertising and sponsorship programs present an unprecedented opportunity for sponsors and advertisers to use our highly visible and valuable real estate to reach the more than 450 million customers who use our facilities annually through a broad range of innovative and complementary concepts.”
The sponsorship program will develop and implement a plan that creates new revenue opportunities at Port Authority facilities. Opportunities may include sponsorships at facilities, information centers and kiosks.
The advertising program will examine opportunities to develop new, creative advertising methods at Port Authority facilities using new and nontraditional technologies, as well as traditional advertising.
In May, the agency issued a nationwide call for firms to respond to two Requests for Proposals to generate revenue from non-toll and fare sources. One sought firms to provide outdoor advertising and other nontraditional advertising concepts. The other sought firms interested in soliciting sponsorships at Port Authority and PATH facilities.
JC Decaux will lead the agency’s revenue-producing advertising program. Active Public Enterprise Group and aXcess Partners Worldwide will lead a joint venture to develop and manage the agency’s first sponsorship program.
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 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 rail system; the Port Authority-Downtown Manhattan Heliport; Port Newark; the Elizabeth-Port Authority Marine Terminal; the Howland Hook Container Terminal on Staten Island; the Brooklyn Piers/Red Hook Container Terminal; and the Port Authority Bus Terminal in midtown Manhattan. The agency also owns the 16-acre World Trade Center site in Lower Manhattan.
The Port Authority is financially self-supporting and receives no tax revenue from either state.