Port Authority Proposes Nearly $5 Billion Capital Spending Increase for Multiple Projects

NEW YORK—The Port Authority of New York & New Jersey has proposed $4.8 billion in additional capital spending as part of its 10-year $32.2-billion capital plan, including a brand new AirTrain Newark project and additional funding for AirTrain LaGuardia and for the redevelopment of Newark Liberty Terminal One and at JFK Airport.

“The Port Authority’s legacy facilities have been subpar for decades. Both the original 2017-2026 capital plan and the modifications we are recommending today provide for extraordinary and unprecedented levels of investment needed to replace and upgrade our facilities to meet the standards of 21st century infrastructure,” says Port Authority executive director Rick Cotton.

The Port Authority’s capital plan reassessment calls for a new AirTrain Newark project that was in direct response to a request from New Jersey Gov. Phil Murphy. If approved by the Port Authority Board of Commissioners, project funding would increase from $300 million to keep the existing AirTrain Newark in a state of good repair to a total of $2.05 billon for the new project. The proposal targets a start to construction in late 2020 or early 2021.

The Port Authority is also proposing a $1.9-billion increase for infrastructure improvements for the JFK Airport redevelopment project, bringing the new appropriation to $2.9 billion of the overall $13-billion project. Approximately $2.9 billion will be spent on Port Authority infrastructure that will involve 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.

The Port Authority is also projecting to seed an additional $390 million for the now $2.05-billion AirTrain project at LaGuardia Airport and another $350 million for the Newark Liberty Terminal One redevelopment project, that now brings the overall development cost to $2.7 billion. 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 increasing construction costs.

The reassessment also provides $200 million in capital funding for the PATH Improvement Plan that calls for increased capacity on the Newark-WTC line by 40% and all other lines by 20% 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.

The Port Authority’s reassessment also adds $50 million for electric vehicle infrastructure and another $35 million for planning for the Newark Liberty Airport Terminal Two project.

Of the proposed $4.8-billion capital plan funding 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 proposed capital plan funding reassessment will be presented to the Board of Commissioners at its meeting on Thursday with the recommendation that the Board finalize scheduled public hearings in New York and New Jersey in July.

The Port Authority also announced on Tuesday the first inflation-based toll increases to the agency’s six bridges and tunnels that will result in the. increase of the cash toll rate at all Port Authority crossings from $15 to $16, as of Jan. 5, 2020. The proposal also makes changes to three other aspects of the toll schedule:  discounts for out-of-state E-ZPass accounts; the NY/NJ Staten Island Bridges discount program; and the Carpool Discount program.

In addition, the proposal addresses changes to PATH’s fare structure with the PATH base fare remaining at its current $2.75 for a single trip, but reducing the discount for PATH multi-trip fares. The proposal also includes increases to the AirTrain fares at JFK and Newark, which have not changed since 2003 and 2005, respectively.