Port Authority Board of Commissioners Approves Reassessment of 10-Year Capital Plan

NEW YORK, Sept. 26 -- The Port Authority of New York and New Jersey issued the following news release:

The reassessment also evaluated the state of good repair projects in the agency's portfolio to ensure adequate progress, proper prioritization, and sufficient capital capacity. Of the $4.8 billion increase, approximately $4.5 billion, or 94% of the increase, is projected to be funded by additional project-related revenues, including revenue increases from the following: terminal rents; airline cost recoveries; user fees; anticipated receipt of passenger facility charges; Hurricane Sandy recovery; and airport improvement grants associated with certain projects.

The formal reassessment of its ten-year, 2017-2026 Capital Plan is required every two years by prior Board resolution, adopted at the time the Board approved the Capital Plan.

The table below depicts the main adjustments to the 2017-2026 Capital Plan:

See table here (http://www.panynj.gov/press-room/press-item.cfm?headLine_id=3208)

The Capital Plan reflects the agency's core transportation mission and commitment to rebuilding the region's aging infrastructure with 21st century facilities designed to dramatically enhance customer experience at a time of continuing record passenger growth. In the first two and a half years since the Plan's adoption, demonstrable progress has been achieved including:

* Completion and opening of the Goethals Bridge and the Bayonne Bridge, the Port Authority's first new bridges in 87 years

* Opening of the first new 18-gate concourse as part of the complete rebuilding of LaGuardia Airport, the first new airport to be built in the U.S. in 25 years

* Groundbreaking for Newark Liberty Airport's new Terminal One to replace the long-outdated Terminal A

* Opened the new head houses of the Harrison Station over the last 8 months - the first new PATH station in New Jersey in more than two decades

"There's no doubt that infrastructure spending on transportation facilities has not kept pace with the unprecedented growth in the New York-New Jersey region, and that must change," said Port Authority Chairman Kevin O'Toole. "Today the Board approved the biennial reassessment which will enable the agency to tackle several critical projects that we must do immediately if we are going to continue to keep the region moving while improving the experience of our customers."

"We have an unwavering commitment to rebuild the region's aging infrastructure and have taken major strides forward, including the completion of the Goethals and Bayonne bridges, the opening of a new state-of-the-art concourse at LaGuardia Airport, and the opening of new head houses at the Harrison PATH Station," said Port Authority Vice Chairman Jeffrey Lynford. "But the region's transportation needs are far, far greater. That's exactly why we approved this reassessment which will allow the Port Authority to advance these essential projects.

"The Port Authority is committed to rapid progress on all our critical capital projects to deliver the 21st century transportation infrastructure that the region deserves. The $37 billion Capital Plan that the Board approved today is part of that commitment," said Port Authority Executive Director Rick Cotton. "This Capital Plan funds major infrastructure projects like the new AirTrain Newark, the AirTrain LGA and redevelopment at JFK and Newark and makes good on sustainability commitments, such as new, clean electric vehicle charging stations, the PATH improvement plan, and planning for a brand-new Terminal 2 at Newark Airport. Both the original 2017-2026 Capital Plan and the modifications approved today provide for extraordinary and unprecedented levels of investment needed to replace and upgrade our facilities to meet the standards of 21st century infrastructure.

Increases to Major Projects

The increases to major projects are all projected to be funded through additional revenues associated with these projects.

* New AirTrain Newark ($1.64 billion increase; $2.05 billion total): The reassessed Capital Plan provides for a new AirTrain Newark for $2.05 billion. This represents an entirely new project. The new AirTrain project replaces the planned spending of $300 million to keep the old AirTrain in a state of good repair. The increase is informed by previously authorized planning efforts and will be covered by: airline cost recoveries; rental car fees; future period PFCs; farebox revenue; and $110 million of reduced spending elsewhere in the Aviation Capital Plan. This major new commitment is in direct response to a request from Governor Murphy. The proposal targets a start to construction in late 2020 or early 2021.

* JFK Redevelopment ($1.9 billion increase; $2.9 billion total): With respect to the already announced JFK Redevelopment Project, this change represents the technical Capital Plan provision catching up with the authorizations made by the Board in October 2018. Approximately $2.9 billion of the $13 billion JFK project will be spent on Port Authority infrastructure, e.g. roadways; airfield improvements; a ground transportation center; and utilities and electrical substations. The original 2017-2026 Capital Plan provided $1 billion for spending on PA infrastructure. This incremental cost of $1.9 billion is projected to be funded from private sector sources - rental revenue from private terminal developers and airline cost recoveries. The contribution from private capital remains at $12 billion of the $13 billion total cost of the redevelopment program, as reflected in the Board's October 2018 approval.

* AirTrain LGA ($390 million increase; $2.05 billion total): The reassessed Capital Plan provides for a $2.05 billion project to build an AirTrain to serve LaGuardia Airport. The current capital plan included $1.5 billion in spending for this project. The revised project cost is informed by the planning efforts and preliminary engineering analysis underway as a result of previously authorized spending by the Board. The increase to the Capital Plan is $390 million, net of $160 million of reduced spending on other Aviation projects. This increase is projected to be covered by multiple sources, including: farebox revenue; airline cost recoveries; and future period PFCs.

* Newark Liberty Terminal One Redevelopment ($350 million increase; $2.7 billion total): In February 2018 the Board reauthorized this project because the total cost to complete the project increased by $350 million to $2.7 billion due to market conditions increasing construction costs. The additional funds required for this increase are projected to be fully provided by revenues from the new terminal.

Funding New Projects

The reassessment provides funding for the Capital Plan for three key initiatives:

* PATH Improvement Plan ($200 million): As announced in June, the PATH Improvement Plan includes three core elements: increased capacity on the Newark-WTC line by 40 percent and all other lines by 20 percent by 2022; a six-point plan to reduce system delays; and a series of actions to improve customer experience including full integration with the MTA's new tap-and-go fare payment system, OMNY.

* Electric Vehicle Infrastructure ($50 million): As the first public transit agency in the country to embrace the Paris Climate Agreement, the Port Authority's commitment to reducing greenhouse gas emissions across its facilities includes the aggressive introduction of all-electric vehicles. These funds will provide the electric charging infrastructure needed to support the electric vehicle initiative, including: 1) infrastructure needed for the conversion of airport shuttle buses to an all-electric fleet; 2) the conversion of 50% of the agency's light vehicle fleet to electric; and 3) charging stations for public use at various parking facilities.

* Planning for Newark Liberty Airport Terminal Two ($35 million): Just as Newark Terminal A is currently being replaced by the new Terminal One, the reassessed Capital Plan enables planning to replace the existing Terminal B with a new Terminal Two. This is the next step to increasing capacity, improving passenger experience, and moving Newark Liberty International Airport, consistent with all Port Authority airports, to world class standards.

The 2017-2026 Capital Plan including its reassessment is a blueprint for future spending and does not supplant the Board's authorization process for specific projects and contracts, which includes a rigorous review process that includes consideration of the revenue-generating potential and capital capacity impact of a given capital project, the relative priority of the project and the overall capital capacity of the agency.

For more detailed information on each of the 2017-2026 Capital Plan, click here (http://www.panynj.gov/press-room/).

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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 the 1,776-foot-tall One World Trade Center 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.

- Capital Plan reassessment includes an additional $4.8 billion for critical Port Authority projects;

- Includes new funding for: new AirTrain Newark; PATH Improvement Plan; and electric vehicle infrastructure

- Approves additional funding for AirTrain LGA

- Adjusts Capital Plan to take account of prior Board action regarding JFK Redevelopment and Newark Terminal One

- Includes incremental funding to plan a new Terminal Two at Newark Liberty International

- Vast majority of increases - 94% - will be funded with incremental project revenue