To stimulate even greater use of the Port Authority's ExpressRail system, the agency's Board of Commissioners approved an incentive program to encourage shippers using the Port of New York and New Jersey to transport even more cargo by rail.
During 2008, the Port of New York and New Jersey set a new record for its on-dock rail system, transporting 377,827 containers for the year, a nearly 6 percent increase over 2007.' The agency is currently investing approximately $600 million to upgrade the port rail facilities in Newark, Elizabeth and Staten Island, which ultimately will allow it to accommodate 1.5 million containers a year.
The new program will provide an incentive of $25 per container shipped by rail to any ocean carrier that increases the number of containers it transports over its 2008 levels.
The Port Authority receives $52 in revenue for each cargo container transported by the ExpressRail system.' Under the incentive program, if an ocean carrier increases its rail cargo business in 2009 over 2008 levels, it would pay $27 for each additional container it ships by rail over that amount.
Port Authority Chairman Anthony R. Coscia said, 'Our $600 million investment in an efficient and sustainable ExpressRail system is a critical factor in our port's number-one standing on the East Coast.' This incentive program will keep our port competitive and ensure that it remains a leading source of jobs and economic activity in our region, despite the challenging economic climate.'
Port Authority Executive Director Chris Ward said, 'The competition for port business is intense, and we must find creative ways to maintain our competitive edge during difficult economic times.' With jobs and economic activity on the line, we believe this incentive - coupled with our multibillion-dollar investment in rail infrastructure - will allow us to maintain our standing as the East Coast's No. 1 port.'
The Port Authority is currently working to upgrade its ExpressRail facilities in Newark, Elizabeth and Staten Island.' In June, two major projects are scheduled for completion - the opening of a second lead track into ExpressRail Elizabeth, and the completion of a rail support facility along Corbin Street.' These projects will nearly double the port's rail capacity and improve overall rail service.
