Multi-partner agreement paves the way for port transformation and increased economic growth.
As a combined effort between the City of New York, New York State, the Port Authority of New York and New Jersey, and the New York City Economic Development Corporation (NYCEDC), an agreement announced earlier this year is intended to transform the Brooklyn Maritime Terminal into a “modern maritime port and vibrant mixed-use community hub.” Both before and after completion, the project is expected to create “thousands of jobs for New Yorkers, and generate significant economic impact for New York City.”
Facility of the Future
The ambitious transformation plan combines New York Governor Kathy Hochul’s focus on “unlocking economic potential on New York State land” with New York City Mayor Eric Adams’ objective to create a “Harbor of the Future,” an initiative which will play an integral role in preparing the waterfront for additional economic growth well into the 21st-century.
Mayor Adams added, “For 20 years, skeptics thought this deal couldn’t get done, but our administration prioritized the ‘Harbor of the Future’ and now we have the potential to create thousands of new jobs, generate billions in economic impact, and create a neighborhood on our shoreline that truly displays the promise of New York City. By assuming control of the Brooklyn Marine Terminal in Red Hook in our city government’s largest real estate transaction in recent memory, our administration is demonstrating that we will continue to deliver big wins for New Yorkers, day after day. The potential for this area is limitless, and we’re excited to work with the local community, our fellow elected officials, and key stakeholders to come up with a plan for these over 100 acres that works for Red Hook, for Brooklyn, and for our entire city.”
As the transformative plan began, the whole of the Brooklyn Maritime Terminal—including “122 acres of waterfront in Red Hook and the Columbia Street Waterfront District, including the existing Brooklyn Cruise Terminal”—came under the control of the Port Authority of New York and New Jersey. Mayor Adams announced an investment of $80 million in the Brooklyn terminal to “stabilize and repair Piers 7, 8, and 10, and to fund planning for the 122-acre waterfront’s future, including an up to $15 million investment to fund a new modern, electrified container crane for operations at the terminal.”
This past summer, the NYCEDC took over the management and operation of the Brooklyn Marine Terminal. In doing so, the NYCEDC and New York City “aim to embrace the future of modern maritime, grow the existing specialized container business, enable the development of a citywide micro-mobility strategy to reduce truck traffic, and work with the community and key stakeholders on a master plan to ensure the long-term viability of the port while incorporating important community amenities.”
The future of on-site cold storage was also addressed with the announcement of a commitment of $15 million. “The lack of cold storage in Red Hook has contributed to traffic, pollution, and other quality-of-life concerns as perishable merchandise is transported in and out of Brooklyn. By committing this funding, Governor Hochul is building on her long-term agenda to improving the quality of life in Brooklyn and in New York City.”
“Win-Win” Agreement for Staten Island
The agreement to modernize the Brooklyn Maritime Terminal also allows the Port Authority of New York and New Jersey to “drive long-term expansion of Howland Hook Marine Terminal.”
Statistics show Staten Island-based Howland Hook is “one of the key container terminals in New York Harbor, and it recently attracted its largest-ever private investment.”
Kevin O’Toole, Chairman of the Port Authority of New York and New Jersey, said, “The Port Authority was created 103 years ago to bring a cohesive vision to our region’s ports. Strategic investment at the region’s seaport by the Port Authority and our private partners has enabled it to become the second-busiest port in the country, and able to meet unprecedented shipping demands during unforeseeable events like the global pandemic.” He added that the agreement “sets the stage for long-term expansion of Howland Hook that will help ensure that the Port of New York and New Jersey will remain competitive globally throughout the coming decades.”
The Port Authority currently leases the Howland Hook Marine Terminal from New York City; however, through the terms of the agreement, the Port Authority will receive “operational control of the site, which will bring the entirety of Howland Hook under Port Authority control, supporting its ability to drive future expansions.” Agreement details show the city will “transfer ownership of 225 acres at Staten Island’s Howland Hook Marine Terminal to the Port Authority, allowing the agency to control all 345 acres of the site.”
Port Authority Executive Director, Rick Cotton, said the Port Authority taking full ownership of the Howland Hook Marine Terminal is “a win-win-win: it benefits the region, the City of New York, and the Port Authority. By strengthening our Howland Hook Marine Terminal through this transaction, we are driving forward one of the fundamental strategic imperatives of the Port Authority, which is the vitality of our ocean-going cargo container supply lines. We look forward to working with our private partners to support Howland Hook’s container operation and to plan its future.”
CMA-CGM at Howland Hook
In September 2023, Howland Hook’s new operator, CMA CGM, committed more than $200 million to “transform the site with modern facilities, expanded capacity, and sustainability upgrades — creating hundreds of new jobs and small business partnerships, particularly for minority- and women-owned businesses, and service-disabled veteran-owned businesses.”
Looking to the future, CMA CGM plans to “boost the facility’s capacity by 50% over the next seven years, allowing it to handle up to 750,000 container lifts each year.” The capacity enhancements will “enable Howland Hook to remain competitive with cargo demand forecasted to surge in the coming decades, keeping goods flowing.”
According to the Port Authority of New York and New Jersey, the overall agreement “aligns with the Port Authority’s Port ‘Master Plan 2050.’” The comprehensive blueprint “aims to guide future expansion and development across the Port of New York and New Jersey, positioning the Port Authority to efficiently handle substantial growth in cargo volume alongside the emergence of new maritime industries and shifting market demands.”
