FOR IMMEDIATE RELEASE October 31, 2000

SCHUMER, MOYNIHAN ANNOUNCE SENATE PASSAGE OF BILL TO AUTHORIZE $1.75 BILLION NY-NJ HARBOR NAVIGATION PROJECT

Authorization, Secured by Schumer and Moynihan, Will Allow New York and New Jersey to Move Ahead With Dredging Projects To Expand Local Shipping Industry

US Senators Charles E. Schumer (D-NY) and Daniel Patrick Moynihan (D-NY) today announced that the Senate has passed the Water Resources Development Act of 2000, legislation which authorizes the New York-New Jersey Harbor Navigation Project, a $1.75 billion comprehensive plan to deepen the Port's channels to meet the demands of modern container vessels. Schumer, Moynihan and Senators Frank Lautenberg (D-NJ) and Robert Torricelli (D-NJ) fought to ensure that the provision including the project was included in the conference report.

"The Senate's action gives the federal go-ahead to a project which is critical to the future the Ports of New York and New Jersey," said Schumer. "Earlier this year, we almost lost our largest shippers because our channels are too shallow. Due to the hard work of New York, New Jersey, the Army Corps of Engineers and the Environmental Protection Agency, terminals like Howland Hook can look forward to a shot in the arm and we can focus on the long-term revitalization of the Port of Brooklyn."

"This is wonderful news for the people of New York!" said Moynihan. "It's the water ways of New York that have allowed us to become the financial capital of the world. By passing this bill today, we will remain so."

Earlier this year, SeaLand and Maersk - New York Harbor's largest shippers (who have since merged) - chose to retain the Port of New York and New Jersey as their Eastern Seaboard hub despite extensive lobbying by both Halifax and Baltimore. One of the main reasons they stayed was both states' commitment to deepen the Port's channels to accommodate the Regina Maersk and other next-generation super-sized container vessels. The Regina Maersk cannot currently enter the Port of New York and New Jersey fully loaded.

The harbor project will deepen New York and New Jersey's major navigation channels to depths of between 50-53 feet. The deepening will accommodate the growing demands of shipping - which has grown by 67% in the past four years - and provide for future long-term expansion. The project will provide an especially important boon to the Howland Hook terminal, which has been the region's fastest growing port in recent years, but whose growth is limited because the Arthur Kill channel is too shallow to accommodate certain vessels.

The Senate's action today signifies the federal government's commitment to ensuring that the Port of New York-New Jersey remains the East Coast's preeminent port. The total cost of the project is $1.78 billion, $1 billion of which will be borne by the States of New York and New Jersey, primarily through the Port Authority of New York and New Jersey. The federal government's commitment is $743,954,000. The dredging projects at each of the eight channels that comprise the project are being reviewed and the time tables are contingent upon the availability of federal and non-federal resources.

The project will expand upon ongoing dredging projects that have been authorized for channels such as the Kill Van Kull, Arthur Kill, and Port Jersey Channels. The Arthur Kill Channel, which supports Howland Hook, was authorized for deepening to 41 feet last year. Under the new project, Arthur Kill, will be deepened permanently to 50 feet, which will enable Howland Hook - New York City's largest terminal - to continue its rapid growth.

"Many people - the Port Authority, Army Corps, and environmental community - have worked hard to bring us to this point of consensus and action," said Schumer. "We need to get this bill to the President's desk."

The bill will now be sent to the House for final passage.

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