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 ove
