Port Authority, New York City Sign Lease Extensions For Maritime Terminals In Staten Island, Brooklyn
Paves the Way for Future Investment and Growth
To prepare for future growth in New York’s maritime cargo and passenger ship industries, the Port Authority and New York City today signed long-term agreements that will allow for the continuous operation of two major port facilities – the Howland Hook Marine Terminal on Staten Island and the Brooklyn Cruise Terminal in Brooklyn. The agreement also will allow for a proposed warehouse distribution center at Pier 11 in Red Hook, Brooklyn.
Under one agreement, New York City will extend the Port Authority’s lease for the 202-acre Howland Hook facility through June 30, 2058. The extension allows the Port Authority to maintain long-term strategic control of a container terminal within the port, to realize the benefit of previous investments, and to make a major capital investment of $110 million to benefit the Howland Hook Marine Terminal. The work will include state-of-good-repair projects and channel deepening. New York Container Terminal, Inc. now operates the terminal under a lease with the Port Authority.
Two years ago, the Port Authority completed its most recent major investment in the Howland Hook facility when it opened ExpressRail Staten Island – a $26 million ship-to-rail cargo transfer facility. During its first year in 2008, the facility handled more than 44,000 containers by rail and removed approximately 70,000 trucks from the road. The rail facility required the reactivation of the Staten Island Railroad. It also required the rehabilitation of the Arthur Kill Lift Bridge and the construction of a rail link from the bridge to the Chemical Coast Line in New Jersey to allow cargo trains to have access to the national rail freight network.
Under the second agreement, the Port Authority agreed to a new lease with New York City Economic Development Corporation (NYCEDC), on behalf of the City, for the letting of Piers 11 and 12 in the Brooklyn-Port Authority Marine Terminal for a 20-year term, with the option to extend the lease with three extension options through 2058. The Port Authority owns the piers and leases them to NYCEDC. NYCEDC, on behalf of the City, opened the Brooklyn Cruise Terminal on Pier 12 in 2006.
In addition to ensuring the long-term operation of the Brooklyn Cruise Terminal, the new lease also allows NYCEDC to extend Phoenix Beverage’s sublease for portions of Pier 11, where the company will develop a maritime-dependent distribution facility. Phoenix, a major distributor of imported beers and other beverages, until recently received its product by container ship in New Jersey. The cargo was then trucked to Long Island City for distribution. The company has closed its New Jersey operations and is receiving its cargo at Red Hook’s Pier 7 under an agreement with Red Hook’s stevedore. Receiving its container ships at Red Hook eliminates about 200,000 truck trips a year from New Jersey to New York bridges. The extended lease with NYCEDC will allow Phoenix to develop a full distribution facility at Pier 11, bring 500 jobs to Red Hook, and improve the economic stability of the Red Hook Container Terminal. Phoenix expects to add an additional 75 to 100 jobs over the next few years.
Port Authority Chairman Anthony R. Coscia said, “Today’s agreements solidify our commitment to continue a vital maritime operation that will provide jobs and economic activity for the region. Although our maritime business has suffered from the economic downturn, our goal is to be well-positioned to meet future cargo demands.”
Port Authority Executive Director Chris Ward said, “This lease marks the Port Authority’s long-term commitment to the economic growth of Staten Island and its port. With that commitment will come investment, jobs and growth. I want to thank the New York City Economic Development Corporation, Staten Island Borough President James Molinaro and New York Container Terminal for their partnership in making this happen.”
Borough President Molinaro said, “The new long-term lease for the Howland Hook Marine Terminal is simply smart planning for Staten Island’s future. With over 515 full-time jobs and annual revenue of $187 million, this lease provides security to one of the Island’s most important economic engines. The Port Authority of New York and New Jersey is to be commended for this forward-thinking investment.”
Congressman Jerrold Nadler said, “Today brings terrific news for the waterfronts of both Brooklyn and Staten Island. By renewing the lease for the Red Hook Container Terminal and extending a new agreement to Phoenix Beverages, we have successfully preserved the lone east-of-Hudson port in New York and laid the groundwork for significant new economic development in the near future. Equally important to our local and regional economies is the renewed lease at the New York Container Terminal in Staten Island. I applaud the Port Authority, the City, and our local businesses for working together to protect our region’s long-term economic growth and vitality.”
Brooklyn Borough President Marty Markowitz said, “This is a long-held dream come true for me – and I commend the NYCEDC and Port Authority’s working together to help bring Phoenix Beverage’s operations to Piers 11 and 7 in Red Hook. Now more than ever, government must find ways to encourage the growth of business and create jobs – and because of the inspired cooperation between NYCEDC, Port Authority and Phoenix, we have been able to ensure that a thriving company is not only going to stay right here in New York, but expand their business and increase the number of good jobs right here in Brooklyn. Bravo!”
“These extended leases are testimony to the vibrancy of the industrial maritime industry in New York City – an industry that provides high-wage jobs to thousands throughout the five boroughs,” said NYCEDC President Seth W. Pinsky. Waterborne transportation is the most environmentally efficient means of getting goods and products into and out of the New York region and is an area that the Bloomberg Administration is determined to expand. I would like to take this opportunity to commend Jim Devine for the part he has played in this expansion since he was selected to head New York Container Terminal in 2002.”
About the Port Authority of New York and New JerseyThe 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; 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.
New York City Economic Development Corporation is the City’s primary vehicle for promoting economic growth in each of the five boroughs. NYCEDC’s mission is to stimulate growth through expansion and redevelopment programs that encourage investment, generate prosperity and strengthen the City’s competitive position. NYCEDC serves as an advocate to the business community by building relationships with companies that allow them to take advantage of New York City’s many opportunities. Find us on Facebook to learn more about NYCEDC projects and initiatives.