Plans unveiled for a new ‘world class’ $9.5 billion terminal at JFK
New York Governor, Kathy Hochul, today announced that the Port Authority of New York and New Jersey (PANYNJ) has reached a revised agreement with the consortium awarded the concession to build the new state-of-the-art Terminal One at John F Kennedy International Airport.
According to PANYNJ, the new 2.4 million square foot international terminal has a price tag of $9.5 billion and will anchor the south side of New York JFK.
Being funded and developed by The New Terminal One (NTO) consortium, the project will be built in phases and is expected to create more than 10,000 jobs, becoming the fourth major terminal project announced by the Port Authority as part of a complete transformation of JFK into a “world-class airport worthy of New York and the region”.
When completed, the new Terminal One, which will ultimately have 23 gates, will be the largest international terminal at JFK and aspires to be among the top rated airport terminals in the world.
“As we recover from this pandemic, I want to ensure that everyone travelling to New York has a welcoming and streamlined experience, and that New Yorkers have the modernised transportation hubs they deserve,” said Governor Hochul.
“The time to get large infrastructure projects done is now, and I’m committed to getting JFK’s brand new Terminal One underway and completed as soon as possible.”
The Port Authority Board of Commissioners will vote on the proposed lease agreement at its meeting this Thursday.
The full cost of the terminal will be privately financed by the NTO consortium which includes financial partners Carlyle, JLC Infrastructure, and Ullico. Reach Airports – a joint venture between Munich Airport International and CAG Holdings – is the operating and technical services partner to the consortium.
As part of the project, PANYNJ will undertake a number of infrastructure upgrades and improvements including roads, parking, and utilities including a new electrical substation.
The new Terminal One will be built on the sites of the current undersized and outdated Terminal 1, the aging and obsolete 59-year-old Terminal 2, and the site of the former Terminal 3, which was demolished in 2013.
Construction of the new terminal is scheduled to begin in mid-2022 and the first phase, including the new arrivals and departures hall and first set of new gates, is expected to open in 2026.
The project was initially scheduled to break ground in 2020, however, due to the severe impact of the COVID-19 on air travel, the terms of the agreement needed to be restructured.
The restructured deal announced today marks a major step forward in the ambitious plan to transform JFK into a unified, 21st century global gateway. The new terminal will be built in phases, subject to international passenger traffic levels, with full completion anticipated in approximately 2030.
It is believed that today’s announcement reflects a significant vote of confidence by the private sector in the future of New York JFK, the return of air travel, and the economic recovery of the region.
A key element of the restructured agreement is an extended lease term to 2060 to provide sufficient time after the terminal opens to enable the private investors recover their multi-billion-dollar investments.
The City of New York’s ten-year emergency extension of the master lease for New York JFK, which had been set to expire in 2050, enabled this important element of the restructured deal with NTO.
NTO selected a design build team, led by AECOM Tishman, and Gensler, a design and architecture firm.
PANYNJ’s executive director, Rick Cotton, said: “The Port Authority is committed to rebuilding and transforming our airports into the world-class facilities the region deserves. The New Terminal One project at JFK will deliver on that commitment.”
While Dr Gerrard Bushell, executive chair of The New Terminal One, noted: “With the support of Governor Hochul and the Port Authority, we will deliver a world-class terminal, drive New York State’s nation-leading MWBE participation to new heights and help spur regional economic growth.
“We will also deliver on our multi-year commitment to community development in Southeast Queens, and an increase in the number of local jobs, educational programs and small business capacity building.”