Port of New York/New Jersey building for the future… now

The Port of New York/New Jersey is the busiest port on the East Coast. And with the projects underway to improve port efficiencies, the Port is paving the way to handling even higher volumes.

For the Port of New York/New Jersey 2024 is a difficult year to describe: It has experienced the best of times, the worst of times and now entering the fourth quarter, the most uncertain of times.

The best of times? In July of 2024 Port Authority of New York / New Jersey (PANYNJ) handled over 806,000 TEUs and was the 7^th busiest month in the Port’s history. And in terms of monthly comparisons, it was the first time the Port eclipsed 800,000 TEUs in the month of July. Overall, the Port handled 5,016,672 TEUs through the first seven months, a 12% increase from the same period in 2023. The performance was also 16% over the first seven months of pre-COVID 2019 year. In terms of throughput 2024 was, until October, shaping up as a very good year….and it is likely to still turn out that way.

Of course, the worst of times for any port is when there is a port shut down for a strike. On Tuesday, October 1^st the International Longshoremen’s Association (ILA) went on strike closing East Coast and Gulf ports. Fortunately, on Thursday night October 3^rd the United States Maritime Alliance (USMX) which represents waterfront management interests, and the ILA announced they had agreed to a tentative deal on wages and to extend their master contract until January 15^th. In a joint statement, the ILA and USMX said, “Effective immediately, all current job actions will cease, and all work covered by the Master Contract will resume.” And with that the USMX and ILA agreed to return to the bargaining table to renew talks on outstanding issues like automation.

Although the Port Authority of New York / New Jersey (PANYNJ) had been preparing for the possibility of a strike, nonetheless there is and was a ripple impact. Even though it was only three-days long in duration around 35,000 TEUs of imports were caught up in the strike with approximately 21,000 of that number in terminals. Remnants of the backlog are likely to be still kicking around at Thanksgiving and the cost is estimated to be around $250 million to $300 million per strike day.

Now as the fourth quarter begins and we look ahead to 2025, there is a lot of uncertainty beginning with the possibility of a new strike after the January 15^th negotiating deadline. Added to this labor deal uncertainty is the impact on trade should former President Donald Trump win the Presidential election in November. Trump has said if he is elected he will significantly raise tariffs on imports to the US. To avoid the tariffs, importers will likely shift their freight schedules forward and trigger an inbound surge into the Port of New York/New Jersey to beat the presidential inauguration date of January 20^th. This timing also backs up against the Chinese Lunar New Year period which begins January 28^th and signals a holiday production slowdown in China and other parts of East Asia.

PONYNJ: A Port of Projects

The Port of New York/New Jersey (PONYNJ) is a Port of projects. And 2024 has been a big year as the PONYNJ embarked on a number of projects and infrastructural investments. Perhaps the biggest was PANYNJ announcement that the agency would take full ownership of the Howland Hook Marine Terminal on Staten Island under an agreement with the city of New York, New York state and the New York City Economic Development Corporation, enabling the PANYNJ to continue to oversee the agency’s Howland Hook cargo container terminal plan and its future. In exchange for control of Howland Hook, the city will gain control of the Port Authority’s partial ownership stake in the Brooklyn Port Authority Marine Terminal in Red Hook, giving the city full ownership of the property. (See Brenda Silva article on page 4)

But while the Howland Hook deal is a big deal for the Big Apple, there are a number of projects underway that will improve port operations going forward. PANYNJ and the U.S. Army Corps of Engineers (USACE) outlined more than $50 million worth of projects funded through the Harbor Maintenance Trust Fund (HMTF) for the Port’s berth maintenance dredging, berth rehabilitation and berth reconstruction. Separately, another $32 million in funding was designated for projects to deepen and widen the Gravesend Anchorage outside the Kill van Kull waterway from its current depth of 47 feet to 50 feet, which will provide a location for large ships to anchor between Ambrose Anchorage in the Atlantic Ocean and the PONYNJ’s container terminals. Additionally, the project will provide a layer of safety for the vessels calling by allowing the larger next generation boxships to move closer to the port during inspections, refueling or inclement weather and to have an emergency refuge area in the event of a mechanical or navigational issue. As Bethann Rooney, director of the Port Department at the Port Authority of New York and New Jersey explained, “This partnership with the Army Corps helps the Port of New York and New Jersey bolster its international reputation as a safe, steady and efficient commercial gateway for the densest population of customers in the United States.” Adding, “These projects will make it possible for our seaport to serve a region whose demand for products made overseas is steadily increasing. The levels of cargo growth we saw during the pandemic will return as the new normal, and we – along with everyone in the supply chain – must prepare now for that future.”

Another major project underway in the PONYNJ is the “Modernization of Roadway Network” or “Port Street Corridor Improvement Project.” The involves a major overhaul of the road network leading into Port Newark and the adjacent Elizabeth Port Authority Marine Terminal. The project received a $44 million grant from the U.S. Department of Transportation’s Infrastructure for Rebuilding America (INFRA) program back in July 2021.

Since the road project is being reconstructed with the container terminals in full operation, it’s been described as a project akin to repairing the wing of a plane while its flying. This analogy particularly applies to the reconstruction, which started in September, of the heavily trafficked Corbin Street ramp. The project will consist of demolishing the six-decade old ramp from Port Street to Corbin Street, and a rebuild to modern roadway standards, including a wider turning angle and the restoration of a second lane. This will allow for a safer, more efficient traffic flow into the complex from major roadways including the New Jersey Turnpike, Interstate 78, and U.S. routes 1 and 9. The ramp from Port Street to Corbin Street currently serves approximately 3,600 vehicles during a typical peak hour, 40% of which is truck traffic.

As PANYNJ Executive Director Rick Cotton noted of the project, “Reconstructing the Corbin Street ramp marks a significant milestone in our effort to modernize one of the major access points to the East Coast’s busiest port complex.” Adding “Thanks to the Port Authority’s detailed planning and diligence, truckers will use a carefully planned detour that can handle the additional traffic, allowing port operations to continue uninterrupted as we reconstruct the ramp.”

According to PANYNJ, the road works will in the first year save 700,000 hours of travel time for vehicles using the port complex following project completion. Another benefit of the estimated savings of vehicle travel times will be an improvement in air quality around the complex. The changes are expected to reduce average annual fuel consumption by approximately 70,000 gallons and result in the avoidance of approximately 750 tons of carbon emissions per year.

Overall, the Port of New York/New Jersey is again positioning itself to handle the container volume surges that inevitably occur following disruptions, which also seem to occur with increasing regularity.