Port Authority Announces Incentive Program to Boost Auto Business at The Port of NY and NJ

On Apr 24, 2014

The Port Authority Board of Commissioners has approved a targeted incentive program to boost auto business at the Port of New York and New Jersey, the largest port for the import and export of new and used automobiles in the country.  The five-year program is designed to attract new automotive manufacturers and to provide incentives to existing ones to increase automobile volumes through the Port.

Under the program, manufacturers that are new to the harbor will receive a discount worth 50 percent of the charge to use the Port Authority’s wharves for every eligible vehicle — defined as an individual automobile or truck — that they import or export through the Port of New York and New Jersey during the first year they participate in the incentive program.

Existing manufacturers can also participate in the program and would receive a financial incentive for all eligible vehicles that exceed the automotive manufacturer’s 2013 volume of eligible vehicles shipped through the Port by more than 3 percent, the baseline growth rate the port has projected.  For example, if manufacturer A shipped 10,000 eligible vehicles in 2013, for every eligible vehicle that they ship above 10,300 (which is 10,000 plus 3 percent), they would qualify for the incentive for each eligible vehicle they ship above the threshold.

“Our port is the nation’s leader for new vehicles from all over the world, and we want to stay on top,” said Port Authority Executive Director Pat Foye.  “Our incentive program will seek to attract new auto manufacturers here and to retain existing ones to ensure the long-term success of the port’s valuable auto business.”

“Maintaining a competitive port is critical to job creation and the economic vitality of the region,” said Port Authority Deputy Executive Director Deb Gramiccioni.  “This program will ensure that our port continues to attract top quality auto manufacturers that serve the tens of millions of consumers in the New Jersey-New York region.”

In calendar year 2015, new and existing automotive manufacturers will need to exceed their previous year total of eligible vehicles by one percent to receive the incentive.  The threshold for the remaining years of the program (2016-2018) will be reset using the same protocol established for the second year (2015) of one percent higher than the prior year’s volume or threshold of eligible vehicles.