FOR IMMEDIATE RELEASE July 13, 2001

SENATORS ANNOUNCE OVER $83 MILLION IN NEW FUNDING FOR CRUCIAL NY-NJ
PORT IMPROVEMENT PROJECTS

New Funding Will Significantly Deepen, Improve NY and NJ Channels, Prevent Shipping Lines from Taking Their Business To Other East Coast Ports

US Senators Charles E. Schumer, Robert G. Torricelli, Hillary Clinton, and Jon S. Corzine today announced that funding for several critical Port Authority of New York & New Jersey harbor navigation projects has been included in the Fiscal Year 2002 Energy & Water Appropriations bill, which passed the Senate Committee on Appropriations earlier today.

The projects include the Arthur Kill Channel Deepening ($18 million), the Kill van Kull Channel deepening ($42 million), the Port Jersey Channel Deepening Project ($21 million), and the New York Harbor Navigation Project ($2.75 million). A brief description of each project is provided below.

"Unless we want to put our fate in the vagaries of the stock market, we need to ensure the shipping industry remains strong in New York, and that's why these projects are so crucial," Schumer said. "Despite the President's proposed 14% cut in funding for all Army Corps projects, we've been able to keep these projects funded and on track."

"These projects are about more than keeping the shipping industry afloat in our area. They are about saving jobs, protecting the local economy and preventing an increase in pollution," Senator Torricelli said. "This funding is a major commitment to the New York and New Jersey Port and we will continue fighting hard to make sure it stays in the bill."

"Still waters run deep, and deep waters run ships. That's why this funding is so important, because it will allow larger ships to sail in and out of our ports. That's good news for the economy of the entire region," said Senator Clinton.

"This funding will ensure that the The Port of New York and New Jersey will continue to serve as the economic engine for our region," said Senator Corzine. "Because of these improvements, New Jersey residents will continue to enjoy the quality of life that a thriving Port provides."

Port Authority Executive Director Neil D. Levin said, "We are grateful
for the tremendous effort by Senators Clinton, Corzine, Schumer and Torricelli to secure this funding, which will allow for dredging projects that are vital to the bistate harbor's future. The deeper channels -- the basic building blocks for our port redevelopment program -- will define New York/New Jersey as the principal American entry point on the Atlantic for decades to come. "

Although the Port of New York and New Jersey is the East Coast's largest port, handling nearly 11% of the nation's port commerce, the shallow depth of its shipping channels severely limits the Port's ability to grow and compete. As modern container vessels continue to grow in size and depth, docking in the Port with a full container loads becomes increasingly difficult. Channel depth problems were the responsible for cargo diversion to Halifax in the mid-1990s. In 1999, the Port nearly lost its largest vessel operator to Halifax and Baltimore, which would have not only undercut the $21 billion in annual economic activity and 165,000 jobs created by Port commerce, but would have made the New York-New Jersey region more dependent upon trucking, causing more congestion and pollution. The Port only avoided this catastrophe and prevented the Maersk steamship line from leaving by agreeing to deepening its navigation channels to 50+ foot depths and making substantial infrastructure improvements. The federal funding announced today will allow the Port to honor those commitments. The funding will be matched by the Port Authority as well.

Specifically, the funding will go towards:

The Arthur Kill Channel project, which will deepen the Arthur Kill Channel that serves the Howland Hook Marine Terminal on Staten Island to 41 feet by 2005. After nearly ten years of inactivity, the Howland Hook Terminal reopened in 1986 and has emerged as a bustling Port facility, witnessing a 72% increase in container business last year alone. Howland Hook Terminal also serves as the Department of Defense (DoD) Strategic Port of Embarkation, and DoD has stressed the need for deeper channels. Construction on the Arthur Kill project is expected to begin later this year. The Channel's current depth is 35 feet.

The Kill van Kull-Newark Bay project, which would deepen the Kill van Kull and Newark Bay channels to 45 feet. These channels serve the Port Newark and Elizabeth Marine Terminals, the Port's busiest terminal area. Construction began on the project two years ago, and is scheduled for completion by 2004.

The New York Harbor & Adjacent Channels, Port Jersey Channel project, which would deepen the channel that serves the Military Ocean Terminal, the Global Container Terminal, and the adjacent New Jersey Automobile Terminal from its current 38 foot depth to 41 feet. Construction on this project is expected to begin later this year and be completed by 2005.

The New York and New Jersey Harbor Navigation project. Authorized by Congress last year, this is a comprehensive navigation project that will deepen the Port's major channels to 50 feet and the entrance channels to 53 feet. The centerpiece of the Port's master plan, the funding builds upon last year's appropriation of $2,528,000 to begin preconstruction, engineering, and design.

The bill will head to the Senate floor in the next few weeks, and will then be negotiated in Conference Committee with the House of Representatives Energy & Water bill.

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