The U.S. Department of Transportation’s (DOT’s) Build America Bureau (Bureau) today announced it provided a $1.89 billion Transportation Infrastructure Finance and Innovation Act (TIFIA) to the PANYNJ to modernize the Midtown Bus Terminal, one of the world’s busiest bus terminals, serving 65 million annual passengers. The loan supports construction of bus storage and staging facilities, new ramps accessing the Lincoln Tunnel, and 3.5 acres of publicly accessible open green space, the first phase of a $10 billion plan for a new 2.1-million-square-foot main terminal. The Bureau helps communities accelerate delivery of infrastructure projects and reduce project costs by providing low-interest, flexible term loans and other financing tools.
“For decades, one of the busiest bus terminals in the world deteriorated and needed major upgrades and modernization,” said Assistant Secretary for Transportation Policy Christopher Coes. “With over 250,000 daily passengers and even higher demand predicted, this project is crucial to the region and the health of our economy, creating 6,000 construction jobs in the process.”
“It’s important to acknowledge the impact that this project will have on the community and the Port Authority’s innovative approach to make this long-planned project finally become a reality,” said Build America Bureau Executive Director Morteza Farajian, Ph.D. “By using TIFIA and embracing innovative financing, the Port Authority will provide a state-of-the-art, reliable, and efficient bus facility much sooner than it otherwise could.”
The new Midtown Bus Terminal will replace the 74-year-old obsolete and deteriorated terminal with a world-class facility. Reliable and efficient bus service between New York and New Jersey is critical to the interconnected economies of both states, as hundreds of thousands of New Jersey residents work in New York City. The new terminal will accommodate projected commuter growth between now and 2050, provide a best-in-class customer experience that serves the region’s 21st-century public transportation needs, and enhance the surrounding community.
“This federal loan for this vital, interstate transportation facility will enable the Port Authority to build a 21st century bus terminal that commuters from New Jersey and communities in New York City deserve and will rely on for decades to come,” said Port Authority Chairman Kevin O’Toole. “I thank our federal partners for their support for a project that will generate economic benefits for our entire region while improving the quality of life for commuters and the community where the terminal is located.”
The Bureau loan will improve the Port Authority’s near-term cash flows and enable it to efficiently advance construction of this critical project as it continues to recover from the impacts of COVID-19 and delivers on its other critical transportation projects. PANYNJ will repay the loan using net revenues from all facilities.
“The approval of a federal TIFIA loan for this phase of our bus terminal replacement project further demonstrates the unprecedented public and governmental support at every level for our plan to replace a reviled and obsolete piece of infrastructure with a new, state-of-the-art facility that sits in the heart of Manhattan,” said Port Authority Executive Director Rick Cotton. “We are grateful to our federal partners at USDOT for working collaboratively with us throughout the process of securing this critical loan, and we are grateful for the support of our New York and New Jersey congressional delegations.”
The new terminal will be constructed on the existing terminal site and will expand capacity, accommodate modern buses, and improve sustainability and operations. The new bus storage and staging facilities will serve as a temporary terminal during construction and will be paired with new ramps to and from the Lincoln Tunnel, removing busses from city streets. The project also includes two “deck overs” at Dyer Avenue for bus operations during construction that will be converted to publicly accessible open green space when the project is complete. Additionally, the project will provide for future private development of commercial office towers at the site.
PANYNJ is a municipal corporate instrumentality and political subdivision of New York and New Jersey, created as a joint venture between both states via an interstate compact in 1921 to oversee, operate, and manage the regional transportation infrastructure.
