City Embarks on $100M Plan to Modernize Freight Delivery

NEW YORK CITY—New York City Mayor Bill de Blasio unveiled a $100-million plan today to modernize and improve the city’s aging freight delivery system.

As part of the administration’s “Freight NYC” initiative, the New York City Economic Development Corp. will release on Friday a request for proposal for a private partner to build an Urban Distribution Center totaling 500,000 square feet or more at the Brooklyn Army Terminal that is estimated to create 500 jobs in Sunset Park.

The NYCEDC will also release an RFP next week for a four-acre site near JFK Airport for the development of an air cargo and distribution facility.

Among some of the key components of the Freight NYC plan that is projected to create 5,000 good-paying jobs, include a number of major projects that involve working with the Port Authority of New York and New Jersey to invest in marine terminals and barging operations, and supports the modernization and expansion of rail lines and freight facilities that would create approximately 900 jobs. Those efforts would include developing a barge terminal to serve the Hunts Point Food Distribution Center in the Bronx, constructing a barge terminal at the South Brooklyn Marine Terminal in Sunset Park and reactivating underutilized rail lines by building new transload facilities within the existing rights-of-way and new passing lanes to alleviate track congestion.

The plan is also geared to improving the city’s air quality and reducing the region’’s over-reliance on trucking. Announced in 2017, Freight NYC is a critical component of Mayor de Blasio’s “New York Works” plan to create 100,000 good-paying jobs over the next 10 years. The New York Works plan focuses on creation accessible jobs in tech, industrial, creative, life sciences and healthcare sectors.

“Freight NYC is an investment in our city’s future,” says Mayor de Blasio. “By modernizing our approach to shipping, we will create thousands of good-paying while keeping our streets safer and cleaner.”

City officials note that the economy depends on its crucial but aging marine, rail and highway infrastructure and relies upon trucks to move nearly 90% of freight. With local freight volumes expected to grow by an estimated 68% by 2045, existing traffic problems and supply chain delays will no doubt be exacerbated. The challenge is particularly acute in the “last mile” of distribution, in which trucks bring goods from port facilities and central warehouses, often located in neighboring states like New Jersey, to consumers over city streets and arteries. In 2017, traffic congestion cost the local economy $862 million, they add.

“Freight NYC will better equip New York City to meet 21st-century demand by modernizing the city’s freight infrastructure, reducing truck traffic and improving air quality—while creating nearly 5,000 good-paying jobs in the process,” says NYCEDC president and CEO James Patchett. “This plan is a win-win for our environment and economy, and we will continue to work with our partners in government, sister agencies and industry stakeholders to transform the city’s freight distribution system and create a more sustainable and resilient supply chain.”

The plan also includes a number of green projects that will promote the use of clean trucks and advance the mayor’s goal of reducing gas emissions in the city by 80% by 2050. The Freight NYC if fully implemented would remove 15,000 vehicles’ worth of CO2 per year, which would help improve air quality and reduce asthma rates in the city.