Port of NY and NJ continue running a money-losing terminal

The operator of the roughly 100-acre container terminal in Red Hook has renewed its lease to continue running the money-losing facility for at least five more years.

The Port Authority of New York and New Jersey completed an agreement on Wednesday (Oct. 17) to essentially maintain the status quo at the terminal, whose yearly container volume is dwarfed by the Port Authority’s shipping facilities in New Jersey.

In the renewal deal, the Port Authority agreed to pay Red Hook Container Terminal, the company that has operated the business since 2011, $2.75 million per year in management fees and $1 million per year to subsidize the terminal’s operations and help make the facility financially viable.

Those payments are identical to what the Port Authority recently has been spending to keep the facility running and pales in comparison to previous years, when the bistate agency spent hundreds of millions of dollars to keep the terminal afloat. It has done that in part at the behest of elected officials, including Rep. Jerry Nadler, who insist that Brooklyn maintain the terminal as a vestige of its historic working waterfront.

Read more on Crain’s New York Business

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