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Project Profiles

Goethals Bridge Replacement

Location

Staten Island, New York to Elizabeth, New Jersey

Project Borrower / Sponsor

The Port Authority of New York & New Jersey

Program Areas

Project DeliveryProject FinanceP3TIFIARevenue - Road Pricing Revenue

Fiscal Year Approved

Fiscal Year 2014

Mode

Toll Bridge

Description

The Goethals Bridge carries I-278 over the Arthur Kill, connecting Staten Island to New Jersey and providing critical access for commuters and freight carriers between New Jersey and New York. The project replaces the existing 85-year-old bridge, which is functionally obsolete, with a new six-lane, cable-stayed bridge directly south of the existing bridge. The current bridge will be demolished upon completion of the new bridge.

The replacement bridge will consist of six, 12-foot travel lanes, 12-foot outer shoulders, and 5-foot inner shoulders, as well as a 10-foot bike/pedestrian path along the northern edge of the New Jersey-bound side. The bridge design also includes a central area between the eastbound and westbound roadways to accommodate future transit service.

The replacement bridge is being delivered as a design-build-finance-maintain (DBFM) P3 under a 40-year concession, a first for the Port Authority. The Port Authority will continue to operate the facility, set and collect tolls. It will make annual availability payments of $56.5 million to the concessionaire.

Cost

$1.436 billion in eligible project costs

Funding Sources

TIFIA loan - $473.7 million (amount does not include $31.6 million in capitalized interest)

Private Activity Bonds - $453.3 million

Equity - $106.8 million

Port Authority Milestone Payments - $125.0 million

Pre-development costs funded by the Port Authority - $300.2 million

Project Delivery / Contract Method

DBFM (design, build, finance, and maintain)

Private Partner

NYNJ Link Partnership - Joint venture between Macquarie Infrastructure & Real Assets and Kiewit Development

  • Kiewit Infrastructure
  • Weeks Marine
  • Massman Construction
  • Parsons Transportation Group of New York

Project Advisors / Consultants

To the Port Authority:

  • Financial Advisor: Ernst & Young
  • Technical Advisor: Halcrow
  • Technical Advisor: HTNB
  • Technical Advisor: Arup
  • Legal Advisor: Allen Overy

To US DOT TIFIA JPO:

  • TIFIA Legal Advisor: Katten Muchin Rosenman LLP
  • TIFIA Financial Advisor: Scully Capital Services, Inc.

Lenders

Bondholders, USDOT TIFIA

Duration / Status

Port Authority awarded the P3 contract in April 2013 to NYNJ Link.

Construction began in May 2014 and is expected to reach substantial completion in late 2017.

TIFIA Credit Assistance

Direct loan: $473.674 million

TIFIA will be repaid from and secured by availability payments received by the NYNJ Link from the Port Authority.

Financial Status

The TIFIA credit agreement was executed on November 5, 2013.

Financial close for the senior debt occurred on November 8, 2013.

Innovations

The Goethals Bridge Replacement is the first surface transportation P3 project in the Northeast U.S. that includes project finance and long-term maintenance.

Related Links / Articles

Port Authority of NY & NJ Project Website

Contacts

Port Authority of New York & New Jersey
(210) 395-3907
GoethalsBridge@paynynj.gov

Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000
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