PANYNJ’s $3.6 billion capital budget will target spending more than $750 million higher than 2024 capital spending as the agency advances several major capital projects, such as the delivery of 72 new PATH railcars, and undertakes preliminary planning and substantial work to kick off its next set of priority projects, such as the total replacement of the outmoded AirTrain Newark and advancement.
The capital spending in the agency’s 2025 budget will fund:
- “The planning and design work needed to move forward on the EWR Vision Plan to transform Newark Liberty into a 21st century international gateway with a new on-airport mass transit system serving all terminals that will replace the existing AirTrain Newark that opened in the 1990s.
- “Track infrastructure replacement, station rehabilitations, signal and equipment upgrades, and new rail cars through the 2-year $430 million PATH Forward program to improve service and reliability of the PATH commuter rail.
- “The full implementation of PATH’s new tap-and-go fare payment system by the end of 2025, including replacements of existing SmartLink/MetroCard readers with new TAPP readers at all PATH stations and the introduction of a new TAPP card that will enable carryovers of existing SmartLink PATH fare discounts.
“For over a century, the Port Authority has been a pillar of imagination and innovation, shaping infrastructure that endures and evolves with this dynamic region,” said Port Authority Chairman Kevin O’Toole. “This budget continues our effort to set a bold new standard for that work. We’re investing significant money to keep the pedal to the metal on what has become the most ambitious capital program in our 103-year history, overhauling, modernizing and refreshing this region’s critical infrastructure as we chart a course to keep our region moving into an even stronger future.”
As PANYNJ “transforms its legacy assets into modern, world-class facilities to meet 21st century standards,” the agency says it “must ensure that it has adequate resources to operate, maintain and secure its larger facilities, and continue its ambitious capital program.”
Unlike similar agencies that operate and maintain critical infrastructure, PANYNJ does not receive any tax revenue from the states of New York or New Jersey. PANYNJ is a self-funded agency with revenue generated in part from third-party fees, rentals, and other charges to businesses operating at its facilities. The agency says it “works aggressively” to generate maximal revenues from non-toll and non-fare sources.
While 65% of projected 2025 operating revenues will come from non-toll and non-fare sources, revenue changes from a package of toll and fare adjustments have been approved for implementation in 2025. PANYNJ says the adjustments are necessary:
- “To address the negative impacts of the COVID-19 pandemic on revenues (loss of $3 billion over the 24-month period of March 2020 through March 2022) and resultant continuing inflationary impacts on operating and capital costs.
- “To continue to invest in the ambitious capital agenda for the agency’s tunnel, bridge, terminal and PATH facilities as laid out in the 2017-2026 Capital Plan.”
Pursuant to the September 2019 Board action on PATH fares, an automatic inflation-based fare adjustment was triggered because the cumulative increase of CPI was greater than $0.25. This Board-mandated increase of the single ride fare from $2.75 to $3 will be effective on Jan. 12, 2025. All existing multi-trip and discounted fares will be maintained with appropriate adjustment. The single ride fare was last adjusted in October 2014, more than a decade ago.
Status of PANYNJ Infrastructure Program:
- The AirTrain replacement project at Newark Liberty continues to progress through the planning and engineering process, with construction expected to begin in the third quarter of 2025.
- PANYNJ launched PATH Forward, a comprehensive $430 million investment in the 116-year-old PATH system to upgrade critical infrastructure, including railcars, bridges, tracks, and switches to make the system more reliable and efficient. In addition, the program is overhauling stations at Grove Street, Hoboken, Exchange Place, and Newport.
- PATH debuted a tap-and-go payment system called TAPP, allowing passengers to pay fares at select turnstiles with a contactless debit/credit card, smartphone, or wearable device.
More information on PANYNJ’s budget is available here.
Further Reading:
- PANYNJ Taps Parsons as Lead Designer for Newark AirTrain Replacement Program
- PANYNJ Awards $1.184B Design-Build Contract to Tutor Perini/O&G for AirTrain Newark System
- Transit Briefs: Caltrain, STM, PANYNJ/PATH, Montreal REM, Minn. Metropolitan Council, Honolulu TOD
- Transit Briefs: MBTA, PATH, TriMet, WMATA
