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Governor Hochul, Mayor Adams, Port Authority Announce Plan to Transform Brooklyn Marine Terminal With Investment in 122-Acre Brooklyn Waterfront, Support Future Growth of Howland Hook Marine Terminal

Government and Politics

May 14, 2024

From: New York Governor Kathy Hochul

Agreement Between City and Port Authority of New York & New Jersey Will Advance Efforts at Brooklyn Marine Terminal and Howland Hook Marine Terminal

City to Develop Modern Maritime Port Focused on Freight Bound for the Five Boroughs, Blue Highway and Micro-Mobility Strategies that Reduce Truck Traffic

State, City Make Joint $95 Million Initial Investment in 122-Acre Brooklyn Waterfront That Will Ultimately Generate Significant Economic Impact, Potentially Create Thousands of Jobs

City to Launch Community Visioning Process to Unlock Full Mixed-Use Potential of Brooklyn Waterfront as Part of New “Harbor of the Future

Port Authority Will Efficiently and Effectively Expand Cargo Operations and Generate Economic Growth on Staten Island

Governor Kathy Hochul, New York City Mayor Eric Adams, and the Port Authority of New York and New Jersey on May 14th, announced an agreement in principle between the City of New York, New York State, the Port Authority, and the New York City Economic Development Corporation that will enable the city to transform the Brooklyn Marine Terminal into a modern maritime port and vibrant mixed-use community hub. This agreement will allow the Port Authority to drive long-term expansion of Howland Hook Marine Terminal, which the Port Authority currently operates on Staten Island. The project to build the 122-acre site stands to potentially help create thousands of jobs for New Yorkers, while generating significant economic impact for New York City. This plan builds on Governor Hochul’s commitment to unlocking economic potential on New York State land, building strong community anchors, and creating good-paying jobs of the future and is a part of Mayor Adams’ efforts to develop a Harbor of the Future — a multifaceted initiative to reimagine New York City’s waterfront to fuel 21st-century growth and innovation.

“On May 14th’s announcement marks the next great chapter for Brooklyn’s storied waterfront and is a win for the people of New York City,” Governor Hochul said. “The transfer will allow the City, working in close partnership with the community and my administration, to begin the long-anticipated process of reimagining the Red Hook piers as a modern maritime facility that also serves community needs. Our partners at the Port Authority will ensure that the marine terminal at Howland Hook remains a thriving shipping hub, building upon the recent landmark announcement of $200 million in private investment to ensure that facility’s strong future.”

New York City Mayor Adams said, “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 create a neighborhood on our shoreline that truly displays the promise of New York City. By assuming control of the Brooklyn Marine Terminal in Red Hook in our city government’s largest real estate transaction in recent memory, our administration is demonstrating that we will continue to deliver big wins for New Yorkers, day after day. The potential for this area is limitless, and we’re excited to work with the local community, our fellow elected officials, and key stakeholders to come up with a plan for these over 100 acres that works for Red Hook, for Brooklyn, and for our entire city.”

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Port Authority of New York and New Jersey Executive Director Rick Cotton said, “This agreement is a win-win-win: it benefits the region, the City of New York, and the Port Authority. By strengthening our Howland Hook Marine Terminal through this transaction, we are driving forward one of the fundamental strategic imperatives of the Port Authority, which is the vitality of our ocean-going cargo container supply lines. At the same time, we will enable the City of New York to transform Brooklyn Marine Terminal into a vibrant, mixed-use community asset.”

Port Authority of New York and New Jersey Chairman Kevin O’Toole said, “The Port Authority was created 103 years ago to bring a cohesive vision to our region’s ports. Strategic investment at the region’s seaport by the Port Authority and our private partners has enabled it to become the second-busiest port in the country, and able to meet unprecedented shipping demands during unforeseeable events like the global pandemic. On May 14th’s agreement sets the stage for long-term expansion of Howland Hook that will help ensure that the Port of New York and New Jersey will remain competitive globally throughout the coming decades.”

On May 14th’s announcement marks the next great chapter for Brooklyn’s storied waterfront and is a win for the people of New York City"

Governor Kathy Hochul

Brooklyn Marine Terminal Transformation

As part of the effort, the city will assume control of the entire marine terminal in Brooklyn, encompassing 122 acres of waterfront in Red Hook and the Columbia Street Waterfront District, including the existing Brooklyn Cruise Terminal. Mayor Adams also on May 14th, announced an initial $80 million investment in the Brooklyn Marine Terminal to stabilize and repair Piers 7, 8, and 10, and to fund planning for the 122-acre waterfront's future, including an up to $15 million investment to fund a new modern, electrified container crane for operations at the terminal. By mid-June, NYCEDC will assume responsibility for management and operations of Brooklyn Marine Terminal, while supporting existing tenants, including assuming the recent five-year extension of Red Hook Container Terminal’s operating agreement. Through this effort, NYCEDC and the city aim to embrace the future of modern maritime, 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 while incorporating important community amenities.

Governor Hochul also announced a $15 million commitment for a future cold storage facility on-site. 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. By committing this funding, Governor Hochul is building on her long-term agenda to improving the quality of life in Brooklyn and in New York City.

The city will assemble a Brooklyn Marine Terminal Taskforce — chaired by U.S. Representative Dan Goldman with New York State Senator Andrew Gounardes and New York City Councilmember Alexa Aviles serving as vice chairs — to co-lead an extensive engagement process. The process will kick off later this spring and will engage a wide range of stakeholders — including local elected officials, unions, waterfront stakeholders, Brooklyn businesses, workforce development, the adjacent community, and the maritime industry — to develop a shared vision for the future of this vital facility and district. NYCEDC has engaged renowned community engagement and urban design firm WXY to support this work.

Additionally, Mayor Adams announced on May 14th, that the city has submitted grant applications for over $350 million in federal funds from the U.S. Environmental Protection Agency and the U.S. Department of Transportation to help transform Brooklyn Marine Terminal into the world's first model for a modern maritime facility optimized for international cargo handling, as well as low-carbon, last-mile freight movement. The funding requests — supported by the elected officials representing the site — prioritize replacing the defunct Piers 9a and 9b with a new marginal pier for greater capacity to handle international containers and micro-freight, and traffic improvements to improve traffic flow around the Brooklyn Cruise Terminal and in the Red Hook community. Over the past decades, as part of the city’s lease and operation of the Brooklyn Cruise Terminal, NYCEDC has invested over $162 million into Piers 11 and 12.

The transfer of control in Brooklyn will provide an opportunity to drive economic growth; explore a multitude of mixed-use development options, including housing and community amenities; prioritize workforce development; potential to help create thousands of jobs; and build a modernized 21st-century maritime port in the 122-acre waterfront with a focus on micro-distribution strategies that can remove trucks from New York City roadways.

Howland Hook Marine Terminal

The city will amend its lease of a 225-acre portion of Staten Island’s Howland Hook Marine Terminal to the Port Authority, which currently leases Howland Hook from the city, to give Port Authority operational control of the site. This will bring the entirety of Howland Hook under Port Authority control, supporting its ability to drive future expansions.

Howland Hook is one of the key container terminals in New York Harbor, and it recently attracted its largest-ever private investment. As part of an amended lease agreement announced in September 2023, Howland Hook’s new operator — global shipping and logistics company CMA CGM — committed more than $200 million to transform the site with modern facilities, expanded capacity, and sustainability upgrades — creating hundreds of new jobs and small business partnerships, particularly for minority and women owned businesses. This agreement between the city and the state will help to build on recent investments at Howland Hook and help to drive even more long-term investment in the terminal. Additionally, CMA CGM has committed to boosting the facility’s capacity by 50 percent over the next seven years, allowing it to handle up to 750,000 container lifts each year.

The capacity enhancements will enable Howland Hook to remain competitive with cargo demand forecasted to surge in the coming decades, keeping goods flowing. CMA CGM has also committed to contracting goals for minority-owned, women-owned, and service-disabled veteran-owned businesses, and to maximizing the use of locally-owned businesses. In the coming decades, the Port Authority and its private partners will strategically invest in upgrades to the site to optimize supply chain integration, create good-paying jobs, and maximize economic growth.

In the coming weeks, NYCEDC and Port Authority will execute a lease and associated agreements for both sites, allowing each to assume immediate control of onsite operations, subject to the approval of each agency’s board.

Port Authority of New York and New Jersey Vice Chairman Jeff Lynford said, “This transaction is beneficial to the Port Authority, the City and the State, as it will help enable both Howland Hook and the Brooklyn Marine Terminals to transform into sites that are equipped to thrive in the 21st century. The consolidated ownership structure at Howland Hook will support long-term expansion and growth as we prepare for more than $200 million in private capital to be invested there in the coming years.”

Empire State Development President, CEO and Commissioner Hope Knight said, "This transformative investment in Brooklyn's waterfront represents a forward-thinking vision for New York City's economic growth and resilience. By revitalizing the Brooklyn Marine Terminal into a dynamic, mixed-use community hub and a center for modern maritime employment, we are unlocking the potential for thousands of new jobs and substantial economic benefits that will ripple throughout the city. This project, in tandem with the future expansion of the Howland Hook Marine Terminal, will foster a thriving, sustainable, and prosperous future for all New Yorkers."

Senator Kirsten Gillibrand said, “The upgraded Brooklyn Marine Terminal will transform the Brooklyn waterfront and improve quality of life for residents of the surrounding neighborhoods. I congratulate the city on taking this important step and will continue to fight for federal resources for the project.”

State Senator Andrew Gounardes said, “There is so much we can unlock by investing in the Brooklyn Marine Terminal and the Red Hook container terminal. Transferring the property to EDC will give us the opportunity to do finally work towards creating a truly 21st century marine terminal. I look forward to working with EDC, the city, the state, and my colleagues in government to engage the community and stakeholders to ensure that we activate our blue ways, tackle the proliferation of last-mile facilities, and unlock economic opportunity.”

Assemblymember Marcela Mitaynes said, “Our waterfront communities have demonstrated their desire to be included in economic revitalization projects. As conversations began about strengthening the working waterfront community at the Brooklyn Marine Terminal, I was excited to see these desires becoming a reality. This project has the potential to bring our community members into modern maritime jobs that prepare them for the green economy of the future, bring customers back to local business, and breathe life back into historically overlooked communities. I want to thank our local and state governments and agencies for their investment into the surrounding neighborhoods. I look forward to being an active participant in maintaining a transparent and open dialogue with the community on the future of our working waterfront."

Assemblymember Charles D. Fall said, “The transformation of the Brooklyn Marine Terminal into a vibrant, mixed-use waterfront community marks a monumental step forward for Brooklyn and for New York City at large. I am personally committed to ensuring that this development not only revitalizes the area but also serves as a catalyst of innovation and opportunity. This project will not only transform our waterfront but also generate thousands of jobs, driving economic growth for our city.”

Brooklyn Borough President Antonio Reynoso said, “Remembering the basics of what makes our city so great can lead to a brighter future for Brooklyn, and that includes revitalizing our waterfront. On May 14th’s announcement is great news for Brooklyn’s economic development. With proactive investments, we can create new jobs and redevelop the waterfront that helped build our borough and our city. Thank you to Mayor Adams, Governor Hochul, the Port Authority, and New York City Economic Development Corporation for bringing this funding to revitalize Brooklyn’s waterfront.”

Staten Island Borough President Vito Fossella said, "A key component of New York and New Jersey's maritime industry is the Howland Hook Marine Terminal. It employs hundreds of people with well-paying jobs, and we would like to see it expand. That's why we supported last year's efforts to provide a significant capital investment to enhance and to improve the terminal. We are hopeful that this transfer to the Port Authority, which seems like a more natural fit, will allow Howland Hook to remain competitive for years to come.”

New York City Councilmember Amanda Farias said, “Our city’s waterfronts are the key to creating a more sustainable future. That is why I am excited to see our mayor, governor, the Port Authority, and the NYCEDC carrying out their vision to develop a Harbor of the Future in south Brooklyn. As Chair of the Committee on Economic Development, I have been unwavering in my support and advocacy on the issue of better utilizing our waterfronts and unlocking the economic potential they offer our city, state, and local economies. I look forward to continuing to work with all parties to ensure we are thinking creatively and effectively about how to serve our waterfront neighborhoods best and bolster our local supply chain.”

New York City Councilmember Kamillah Hanks said, “The plans for the Brooklyn Marine Terminal, coupled with the strategic expansion of the Howland Hook Marine Terminal, demonstrates our commitment to Staten Island's economic vitality and its pivotal role in New York City's maritime industry. This initiative is set to create thousands of jobs and boost economic activity. By focusing on sustainable development and modern infrastructure, we are ensuring that Staten Island remains at the forefront of economic and community development."

New York City Councilmember Shahana Hanif said, “As a proud representative of the Columbia Waterfront, I am excited about the potential benefits that an investment for the Brooklyn Marine Terminal can bring to my constituents. If implemented equitably, this initiative will create jobs, reduce emissions, and foster a more sustainable and inclusive economy for all New Yorkers. I am committed to making sure that the community has a seat at the table. The upcoming visioning process for the city’s investment must improve the health and well-being of local neighborhoods.”

New York City Economic Development Corporation President & CEO Andrew Kimball said, “This deal provides a generational opportunity to work with the community and stakeholders on an extensive visioning process to ensure a transformational master plan that unlocks the full potential of over 100 acres on the Brooklyn waterfront. A reimagined waterfront can deliver a modern maritime port with a focus on micro-distribution strategies that remove trucks from our streets and increase union working waterfront jobs, as well as provide important community-facing amenities. This site will become another critical node in Mayor Adams’ vision for the ‘Harbor of the Future.’”

Real Estate Board for New York President James Whelan said, “REBNY applauds the city, state, and Port Authority for coming together on this agreement. We expect Brooklyn and Staten Island neighborhoods along the waterfront will see continued economic momentum and private investment because of these projects, helping to grow and further diversify New York City’s economy.”

Maritime Association of the Port of NY & NJ Executive Director Stephen Lyman said, “The Maritime Association of the Port of NY & NJ applauds the work from all parties involved on this agreement. Reinvigorating the marine assets in the Port of NY & NJ is crucial to supporting freight movement now and in the future. We are excited to support the economic benefits that will surely propel maritime commerce for many years to come.

Brooklyn Chamber of Commerce President and CEO Randy Peers said, “Throughout its history, New York City has always been an important port city and a maritime powerhouse. On May 14th’s announcement by the Port Authority and NYCEDC builds upon our the importance of maritime uses at the Brooklyn Marine Terminal, and positions this important part of our waterfront for strategic growth.”

Brooklyn Bridge Park President Eric Landau said, "As a neighboring waterfront public space, we are thrilled about the incredible possibilities that transforming the Brooklyn Marine Terminal will create for our borough and our city. All of us at Brooklyn Bridge Park are very excited to join in what comes next.”

Local 1814 ILA President Frank Agosta said, “This investment in the Red Hook working waterfront is crucial to the future of New York City. We need to reimagine how freight and goods are delivered utilizing our 500 miles of waterfront. The workforce of ILA Local 1814 is ready to get to work and we thank the governor and mayor for this down payment".

Waterfront Alliance President & CEO Cortney Koenig Worrall said, “At this time of shifting baselines where business is no longer usual, we are pleased to see a recommitment by New York City to its working waterfront, maritime industry, blue highways expansion and micromobility. New York City and the region will face major growth in goods, bulk construction materials, food and other essential supplies needed at the waterfronts and the interiors of the five boroughs. This growth must not be handled solely by trucks, which brings the opportunity squarely to Brooklyn Marine Terminal for freight modernization. We are excited about the many opportunities, the commitment to stakeholder engagement, and that New York City is meeting the call for sophisticated, thoughtful and forward thinking maritime leadership.”

NY-NJ Harbor & Estuary Program, Hudson River Foundation Director Robert Pirani said, “New York’s port is a vital part of our economy and a major influence on the health of the estuary. Ensuring that this coastal infrastructure meets maritime needs as well as community and ecological goals is critical to its success. We appreciate the importance of this initiative and look forward to the continued conversations about the future of these important facilities in Brooklyn and Staten Island.”

Staten Island Economic Development Corporation President & CEO Mike Cusick said, “Howland Hook’s strategic location and connections to global commerce are vital to economic expansion on Staten Island. Under the ownership of the Port Authority in addition to CMA CGM’s historic investment, the terminal is set to support job growth, sustainable supply chains, and opportunities for local businesses. We applaud our City and State partners for reaching this agreement, and we look forward to working closely with the Port Authority as we continue to drive exciting, long-term investments in our borough’s waterfront and surrounding areas.”

Red Hook Container Terminal, LLC President & CEO Michael Stamatis said, “On May 14th’s announcement by Mayor Adams underscores the importance of the maritime industry in the heart of New York City, and in particular, the importance of the Red Hook Container Terminal and greater Brooklyn Marine Terminal facility to the people of the City and State of New York. We applaud New York City Mayor Adams and Governor Hochul for making this long-term commitment and investment in the future of the working waterfront, ensuring a stable and resilient supply chain for the millions of people who live, work and visit New York City every day, while also demonstrating to the men and women who sacrificed their own personal safety as essential workers at the Port during the Covid-19 pandemic, ensuring our vital supply chain remained open, that their sacrifice did not go unnoticed. The modernization and expansion of the Brooklyn Marine Terminal facility must be done now to meet head on the challenges associated with traffic, congestion, reducing carbon emissions, addressing sea level rise and climate change, and delivering a resilient future for all New Yorkers."

New York University Professor of Urban Planning and Policy Mitchell L. Moss said, “Red Hook is the hidden gem of the New York City waterfront. Mayor Adams and the Port Authority have forged a plan to have New York City provide unified leadership to guide the future of Red Hook while the Port Authority strengthens Howland Hook's role as a major container cargo hub for the region. For too long, we have neglected Red Hook; under Mayor Adams and EDC President Andrew Kimball, the rebirth of Red Hook's waterfront will generate new jobs, new activities and new opportunities for New Yorkers to connect with our spectacular maritime culture.”