NEW YORK, NY — The Port Authority of New York and New Jersey announce federal approval of a $1.9 billion loan through the U.S. Department of Transportation toward construction of the first phase of the Midtown Bus Terminal replacement project. The Transportation Infrastructure Finance and Innovation Act (TIFIA) loan, to be issued through the Build America Bureau, will support the funding of the first phase of the $10 billion bus terminal replacement project, with construction to begin this year.
“The Midtown Bus Terminal is a fixture in many New Jerseyans’ daily lives, and our residents deserve a best-in-class facility,” New Jersey Governor Phil Murphy said. “Securing this critical funding brings us a step closer to a new and modernized bus terminal that will serve as the world-class gateway to our region while bolstering our regional economy.”
“[This] announcement brings us yet another step closer to rebuilding this key gateway into New York City," Governor Kathy Hochul said. "Replacing and expanding the bus terminal will mean the long held dream of creating modern infrastructure that prioritizes public space, bolsters local business, and ensures the safety and well-being of travelers will finally become a reality."
“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,” Port Authority Chairman Kevin O’Toole said. “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 Port Authority will borrow from the 25-year-old TIFIA federal loan program for the first time, taking advantage of subsidized loan costs and repayment terms that allow for principal and interest payments to begin up to five years following the project’s substantial completion. In addition to the TIFIA loan, financing for the first phase of the project will include Port Authority capital funding. Future phases will also use Port Authority capital for a significant portion of the cost, funding from air/development rights for potential new commercial towers above the new bus terminal, and New York City’s contribution of PILOTs generated by the Port Authority’s development efforts.
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The $10 billion facility will be completed in phases. When complete, the project will include a new 2-million-square-foot main terminal, a separate storage and staging building, and new ramps leading directly into and out of the Lincoln Tunnel. The project’s first phase — the temporary terminal, new ramps, and Dyer Avenue deck-overs — is expected to be fully completed in 2029, and the new main terminal is expected to be completed in 2032. The project plan — including the permanent closure of a portion of 41st Street between Eighth and Ninth avenues, a central main entrance, more street-facing retail, a multi-story indoor atrium, and new public open space — will enhance both the commuter experience at the world’s busiest bus terminal and the community surrounding the facility. The project is expected to create approximately 6,000 good-paying union construction jobs.
The Port Authority’s plan for the replacement of the Midtown Bus Terminal reflects public feedback from extensive community outreach, including input from New York City, commuters, local community boards, and elected officials in both states. The federal record of decision permits construction of a full three-part building plan and deck-overs that will be converted to publicly accessible open space once the new main terminal is completed. The Port Authority Board of Commissioners approved construction contracts for the deck-overs in July, which were the first contracts associated with the bus terminal replacement project. The project also includes a wide array of community benefits, including:
- Added capacity to allow curbside inter-city buses that currently pick up and drop off on city streets surrounding the bus terminal to move their operations inside the bus terminal and off the streets.
- A new staging and storage facility that will consolidate storage and staging functions in a single facility, minimizing bus idling and circulation around local city streets and reducing congestion in and out of the Lincoln Tunnel.
- The creation of 3.5 acres of publicly accessible green spaces on Port Authority property by building platforms spanning the currently below-grade Dyer Avenue “cut” and turning the open space on top of the new deck-overs into public green spaces at the end of construction.
- New concessions and retail amenities that will be accessible from the streets in the community as well as from inside the bus terminal.
The new bus terminal will be built for the future and designed to achieve net-zero emissions, accommodating all-electric bus fleets and implementing 21st century technology at every turn. The building will also include sustainability and resiliency measures, from LEED certification and clean construction to onsite renewable energy, zoned heating and cooling systems, and heat recovery and reuse technology. The new ramp structure will provide a direct connection to the Lincoln Tunnel, with added queue space and bypass capability, thereby reducing bus circulation on local city streets. Community-friendly outward-facing local retail will benefit commuters and the community alike.
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The Port Authority’s construction plan for the new bus terminal is being developed with input from bus carriers, customers, the local community, engineering and construction experts, and architectural and design firms. Current plans provide for a phased construction approach with the staging and bus storage facility to be built first, so that it can serve as a temporary terminal while the existing terminal is demolished and rebuilt.
