New York City Update

$10B Midtown Bus Terminal Plan Gets Final Federal, City Approvals

NEW YORK—The Port Authority of New York and New Jersey in early December received final and complete approval from the Federal Transit Administration and the City of New York to move forward on the project to replace the aging Midtown Bus Terminal with a world-class facility. Each entity conducted its own separate and thorough review of the proposed project.

The FTA issued the Record of Decision on Dec. 4 following a federally mandated environmental review and the signing in September of the project’s final environmental impact statement. The City of New York also fully approved the project following a unanimous 45-0 vote by the City Council in November and the end of the mayoral review period.

All approvals and permits for the replacement of the Midtown Bus Terminal have been secured. In July, the Port Authority Board of Commissioners approved the first early works construction contracts.

A rendering of the new Midtown Bus Terminal, which will replace the existing 74-year-old, functionally obsolete and rundown terminal with a long-overdue world-class facility.

With all approvals complete, construction of the deck-overs above Dyer Avenue is slated to start early next year and the agency’s construction procurement for the rest of the project will advance. The project is expected to be constructed in phases, with a temporary terminal and new ramps completed in 2028 and the new main terminal completed in 2032.

The Midtown Bus Terminal is a crucial transportation hub for New York, servicing more than 250,000 passenger trips on a busy weekday alone, it was noted. The project is designed to help the city meet projected ridership growth levels while reducing congestion on city streets.

New Jersey Gov. Phil Murphy said the new bus terminal will increase connectivity on both sides of the river, creating an even stronger, more economically vital and easily accessible region.

The new Midtown Bus Terminal will replace the existing 74-year-old, functionally obsolete and rundown terminal with a long-overdue world-class facility. Reliable and efficient bus service between New York and New Jersey is critical to the interconnected economies of both states, as hundreds of thousands of New Jersey residents work in New York City. The new terminal is designed to meet projected 2040-2050 commuter growth, provide a best-in-class customer experience that serves the region’s 21st century public transportation needs, and enhance the surrounding community.

The $10-billion world-class facility will include a new 2.1 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 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 construction plan for the new bus terminal is being developed with input from bus carriers, customers, the local community, world-renowned engineering and construction experts, and innovative 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. The proposal eliminates the taking of private property as it would be built on existing Port Authority property stretching as far west as 11th Avenue.

Funding for the project is expected to include Port Authority capital funding for a significant portion of the cost, federal loans, development rights and PILOTs approved by the city for several potential new commercial developments, including above the new bus terminal.

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