The Port Authority of New York and New Jersey Board of Commissioners recently approved an agreement that will allow construction to proceed on a major ship-to-rail facility adjacent to GCT Bayonne – a project that completes the agency’s $600 million initiative to provide all of its major marine terminals with direct access to rail.
Under a lease supplement with GCT USA, the terminal operator agreed to complete the final design and build the new ExpressRail Port Jersey facility in Greenville Yard. In return, the Port Authority will reimburse GCT up to $56 million to cover the costs of construction of the facility. The project, as with other ExpressRail projects in the harbor, is contingent on continued funding provided by the Cargo Facility Charge, a per-container fee assessed on cargo shipped through the Port of New York and New Jersey to cover the costs of critical road, rail and security infrastructure projects.
Once the ExpressRail facility opens in 2018, GCT will be responsible for the ongoing operation and maintenance of the facility, which is expected to reduce truck traffic and result in significant environmental benefits for the region.
The port’s ExpressRail facilities, combined with other environmental programs instituted in the port, have resulted in an average 33 percent reduction across all port related pollutant emissions, despite a 7 percent increase in port cargo over the same period between 2006 and 2013.
“Given the highly competitive nature of the port business, it’s critical that we invest in projects that will allow for the efficient, more environmentally sustainable movement of freight and goods throughout the region,” said Port Authority Chairman John Degnan. “The project will allow us to maintain our competitive edge and cement our position as the East Coast’s premier destination for international cargo.”
“As the most populated region in the country, it’s essential that we provide the necessary infrastructure to move freight in the most efficient and environmentally friendly way,” said Port Authority Vice Chairman Scott Rechler. “This critical investment will help take tens of thousands of truck trips off our roads and reduce congestion and harmful emissions throughout our region, while delivering goods to the millions of people throughout the States of New York and New Jersey and beyond.”
“GCT is the industry leading developer of state-of-the-art marine and rail infrastructure. Completed in 2014, our automation and expansion project transformed GCT Bayonne into the most advanced facility in North America,” said Stephen Edwards, President and CEO of GCT Global Container Terminals Inc. “We are delighted to work with the Port Authority and bring this same expertise to expedite and manage this important development.”
During the lifetime of the ExpressRail Port Jersey facility, it is expected to reduce nitrogen oxide emissions by 415 tons and particulate matter emissions by 108 tons, which is the equivalent to taking more than 45,300 cars off the road. The facility also will reduce carbon dioxide emissions by 331,161 tons, which equates to the carbon emissions from 30,215 homes.
Cargo coming on and off ships at GCT Bayonne today is transported to and from its final destination by truck or by truck to another ExpressRail facility. The new facility will allow for the transloading of containerized cargo from ship to rail, offering ocean carriers and their customers a more efficient and environmentally friendly option for goods movement. The facility will have an initial capacity of at least 125,000 container lifts a year.
In addition to the rail facility, Global also plans to launch a truck appointment system later this year to help reduce congestion and improve efficiency at its facility. Creating a truck appointment system at all of the Port Authority’s marine terminals was a top recommendation by the Port Performance Task Force.
So far this year, cargo volumes in the Port of New York and New Jersey are extremely strong and on record pace for 2015, up 12 percent from the previous annual record through August. The port now handles approximately 50 percent of the cargo transported through port facilities in the North Atlantic.
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