EDA Joins Federal Reserve Bank on Tour of Port Newark Container Terminal
TRENTON, N.J. (December 1, 2017) – The New Jersey Economic Development Authority (EDA) joined Federal Reserve Bank of New York President William Dudley on Wednesday to tour Port Newark Container Terminal (PNCT), which is undertaking one of the largest infrastructure projects in the State with support from the EDA. President Dudley routinely meets with local community and business leaders to gain a deeper understanding of regional economic conditions and inform the policy making process.
Located in Port Newark, PNCT occupies 267 acres and handles 750,000 containers annually. PNCT is in the midst of a $500 million expansion to increase its container-handling capacity from a current annual lift total of 700,000 to a 1.2 million annual lift total by 2019. The facility is capable of handling ultra-large container vessels and significantly improving road and rail capabilities. PNCT already has doubled its on-dock rail capacity and purchased three new super-post-Panamax ship-to-shore cranes in anticipation of the ultra-large container vessels, which the new Bayonne Bridge now is able to accommodate.
“Building on recent infrastructure investments in the State, including the raising of the Bayonne Bridge and the Turnpike expansion, PNCT is in a position to aggressively invest in and expand its operations, creating high-paying jobs and demand for industrial real estate throughout New Jersey,” said EDA President and Chief Operating Officer Tim Lizura. “It was great to tour PNCT’s operations and we are thrilled that this impressive company calls New Jersey home.”
EDA recently approved $155 million in tax-exempt and taxable bonds to support PNCT’s large-scale expansion project, which is expected to result in over 290 new permanent jobs and 410 construction jobs. EDA also approved $145 million in refunding bonds, which were initially issued in 2003 to allow PNCT to redevelop the terminal. Through a federally authorized program, the EDA issues conduit tax-exempt private activity bonds, the proceeds of which are used to provide financing to support qualified projects, including manufacturers, not-for-profit organizations and exempt public facilities. PNCT has secured a long-term extension of its lease agreement with the Port Authority of New York/New Jersey, with options through 2050.
PNCT’s expansion plans include the development of 74 additional acres, a new gate facility, additional berth deepening and upgraded container handling equipment including additional super-post-Panamax ship-to-shore cranes.
“Our expansion will double the container capacity capable of moving through the terminal, creating significant economic growth within the region,” said Jim Pelliccio, PNCT President and Chief Executive Officer. “We remain committed to growing and investing in Port Newark, and we were pleased to showcase our facility to the EDA and Federal Reserve Bank of New York.”
The Federal Reserve Bank of New York oversees the Second Federal Reserve District, which includes New York State, the 12 northern counties of New Jersey, Fairfield County in Connecticut, Puerto Rico and the U.S. Virgin Islands. It is the largest Reserve Bank in terms of assets and volume of activity. Regional visits facilitate direct engagement with various stakeholders and allow President Dudley to better identify ways for the Federal Reserve Bank to support the Second District.
In addition to touring PNCT, EDA also joined President Dudley on a visit to Kearny Point, Hugo Neu’s redevelopment of the historic 130-acre ship-making and dismantling facility in Kearny. In one of the most economically-significant adaptive reuse initiatives in the region, Hugo Neu is reinventing the site as a modern workplace home to a diverse community of pioneering businesses. Building 78, the first building to be redeveloped under its ambitious multiphase redevelopment plan – and now more than 95-percent leased – features creative flex office spaces, co-working, a rooftop event space, and a nouveau American bar and grill. Notably, more than 70-percent of the businesses located in Building 78 are minority- or women-owned.
In total, Kearny Point will reactivate more than three million square feet of industrial space and create more than 5,000 jobs. Through its next phase, Hugo Neu will redevelop the former craneway, Building 100, into a technologically-advanced creative office environment geared toward larger companies. Building 100 will be complemented by over 25 acres of new open and civic space, including restored native habitat, a public waterfront promenade, and a living shoreline.
To learn more about bond financing and other EDA resources, visit www.njeda.gov or call 609-858-6767, and follow @NJEDAWasHere on Twitter and LinkedIn.