New York Will Invest $95M to Expand Brooklyn and Staten Island Port Ops
The City and State of New York along with the authorities that oversee port operations announced a $95 million plan to enhance maritime operations on the Brooklyn waterfront as well as an agreement for operations of Staten Island’s Howland Hook Marine Terminal after the acquisition of the terminal operations by CMA CGM. It is part of a master plan to further revitalize New York City’s waterfront and maintain the port’s competitive position.
The Port of New York and New Jersey has experienced strong growth maintaining its position as the busiest U.S. East Coast container port. Briefly in 2023, the joint port also claimed the title of the busiest container port in America and continues to rival the Southern California ports for container volume.
New York’s Governor Kathy Hochul, New York City Mayor Eric Adams, and the Port of Authority of New York and New Jersey announced an agreement in principle to modernize and revamp the Brooklyn waterfront, streamline operations, and expand Howland Hook on Staten Island. The mayor’s office is calling it the city government’s largest real estate transaction in recent years. It will kick off a massive investment to create a modern maritime facility in a section of the port that once was a key location for bulk cargo but has fallen into disrepair.
“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 build a vibrant mixed-use neighborhood and modern maritime port focused on getting trucks off the roads,” said Mayor Adams.
Under the terms of the agreement, the city will assume control of the Brooklyn maritime terminal which encompasses 122 acres of the waterfront in a neighborhood known as Red Hook and includes one of the current cruise terminals in the port. The city announced an initial $80 million investment which will be used to stabilize and repair Piers 7, 8, and 10 and to fund the planning for the waterfront. Included in this is $15 million for new electric container cranes.
By mid-June, the New York City Economic Development Corporation will assume responsibility for the management and operation of the Brooklyn Marine Terminal. According to the NYEDC, the city aims to 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.
Governor Hochul also announced a $15 million commitment for a future cold storage facility at the Brooklyn Marine Terminal. 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 according to the state.
The city is also applying for a further $350 million in federal funding to further enhance the Brooklyn Marine Terminal as what they called “the world’s first model for a modern maritime facility.” They would replace the defunct Piers 9a and 9b and optimize the port for international containers and micro-freight.
At the same time, the Port Authority will take full operational control of the city’s 225-acre portion of the Howland Hook Marine Terminal on Staten Island. It is one of the key container terminals in the port. Last year, CMA CGM committed to a $200 million expansion and modernization of the terminal after acquiring the facility. CMA CGM plans to increase capacity by 50 percent over the next seven years. The target is to expand capacity so that the terminal will handle 750,000 container lifts each year.
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