Readers Write: Delayed Port Authority projects run up even more billions

The Island Now

The Notice of Public Hearing by the Port Authority of New York and New Jersey for increasing tolls on bridges, tunnels, Port Authority Trans-Hudson and Air Train fares is just the start for a series of fare increases over coming years. Justification for this latest round is based upon raising $4.8 billion in new revenues. This is to increase the 2017 to 2026 Capital Program from $32.2 billion to $37 billion to support several ongoing and new capital projects.  

Remember the new Port Authority PATH World Trade Center station? It had an original start date at 2003 with a completion date of 2009 at a cost of $2 billion. The Port Authority subsequently signed a construction agreement with the Federal Transit Administration. This made up to $2.2 billion in federal funding available for the WTC’s permanent new PATH terminal. The grant agreement between the Port Authority and FTA was awarded in December 2003. It included a commitment to start construction in 2006, with completion by June 2011.

Most construction was completed in 2016, five years beyond the original promised scheduled date. At $4 billion, the cost was double the original $2 billion.

Gov. Cuomo, in 2014, estimated the cost would be $450 million for building the LaGuardia air train with a completion date of 2019. The original Port Authority 2017 to 2026 capital budget plan lists this project at $1 billion. It was subsequently revised to $1.5 billion several years ago and today is $2 billion. Costs will be further refined as the project progresses through the environmental review process, preliminary and final design, award of construction contracts followed by change orders during construction, due to changes in scope or unforeseen site conditions. The  final cost for the air train could end up several hundred million to a billion or higher. Four years have passed with little progress. There are no completed environmental documents or any preliminary design and engineering efforts necessary to validate construction costs. 

News that the Port Authority has yet another plan for rebuilding the existing 42nd Street bus terminal is disappointing. The Port Authority 2017 to 2026 10-year, $32 billion Capital Plan provided only $3.5 billion toward construction of this new facility. How many more years will it take to complete the environmental review process, preliminary along with final design and engineering along with identifying and securing funding for construction?

It is wishful thinking that the Port Authority can count on $6.5 billion in future federal funding to make up the difference. Don’t be surprised in waiting until the next Port Authority 10-year, 2027 to 2036 Capital Plan before a complete $10 billion funding package is in place. No one can predict how many more billions or years it might take to complete.

There is only $70 million for advancing an environmental study along with preliminary design and engineering for the Cross Harbor Freight Tunnel within the Port Authority 2017 to 2026 Capital Plan. This leaves a $9.930 billion shortfall to complete this project. This project has been championed by some for 30 years. It has yet to progress beyond the federal National Environmental Protection Act review process. No one can predict how many more billions and decades it might take to complete.

Three years ago, the estimated cost for the Gateway Tunnel grew by $3.9 billion from $20 billion to $23.9 billion. Two years ago, the new cost estimate increased another $5.2 billion from $23.9 billion to $29.1 billion.  

Since 2001, the total direct cost for MTA LIRR East Side Access to Grand Central Terminal has grown from $3.5 billion to $11.2 billion today (plus $600 million more in financing costs). I predict $12 billion to $13 billion in direct costs when completed. This does not include $4 billion more for indirect costs known as “readiness projects” carried off-line from the official project budget, which supports implementation of this new service. The promised opening service date has slipped on numerous occasions from 2009 to December 2022. Don’t be surprised if this ends up in 2023 or later.

How many Port Authority projects will suffer the same cost increases and years or decades of delay like MTA LIRR East Side Access? Anyone want to guess what Pennsylvania tolls will be to pay for all of the above?. Perhaps Gov. Cuomo should worry more about reorganizing the Port Authority rather than MTA.

Larry Penner

Great Neck

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