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Project Profiles

Staten Island Ferries and Terminals

Location

New York City

Project Sponsor / Borrower

New York City Department of Transportation (NYCDOT)

New York City Economic Development Corporation (EDC)

TSASC, Inc. (special purpose not-for-profit state corporation authorized to issue bonds secured by tobacco settlement revenues)

Program Areas

Project FinanceTIFIA

Fiscal Year Approved

Fiscal Year 2000; Retired (paid in full)

Mode

Ferry

Description

The Staten Island Ferries and Ferry Terminals project consisted of construction and acquisition of three ferry boats and redevelopment of two ferry terminals, the St. George Terminal in Staten Island and the Whitehall Terminal in lower Manhattan, including new traveler information systems and multi-modal connections to taxis and transit.

The ferry system operates an eight-vessel fleet, serving 70,000 passengers per day on the five-mile, 25-minute ride between Staten Island and Manhattan. The three new ferries accommodate 4,400 passengers each, 25 percent more than previous capacity.

Cost

Total cost: $482.2 million

  • Whitehall Terminal - $176 million
  • St. George Terminal - $136.1 million
  • Ferries - $137 million
  • Non-TIFIA Project Reserve - $22.3 million
  • TIFIA Loan Reserve Requirement - $10.9 million

Funding Sources

Bond proceeds - $274.3 million

TIFIA loan - $159.2 million

Federal grants - $47 million

State grants - $1.8 million

Project Delivery / Contract Method

Design-Bid-Build (terminals)

Private Partner

None

Project Advisors / Consultants

Tishman Construction Corp. / Frederick R. Harris, Inc. - Whitehall Terminal construction management

Skanska - St. George Terminal construction management

Manitowoc Marine Group - Ferry manufacturing

Lenders

Bondholders, USDOT TIFIA

Duration / Status

Renovation of the St. George Terminal and Whitehall Terminal complete. All ferry vessels delivered and in revenue service:

  • The three new ferries were brought into revenue service on January 26 and May 20, 2005 and on April 4, 2006.
  • The St. George Terminal reopened on May 20, 2005
  • The new Whitehall Terminal opened on February 8, 2005

TIFIA Credit Assistance

Direct Loan: $159.2 million

The TIFIA loan was secured by tobacco settlement revenues due to TSASC, Inc. under the Master Settlement Agreement with participating tobacco companies. This agreement requires participating companies to make annual payments to beneficiaries, including TSASC, in perpetuity. TIFIA held a parity lien, with senior bondholders, of $750 million in outstanding TSASC bonds, the proceeds of which were available for other purposes.

Financial Status / Financial Performance

TIFIA credit agreement signed on December 19, 2001.

Using tax-exempt bonds, TSASC pre-paid the TIFIA loan with interest on February 8, 2006. The loan was repaid 27 years ahead of schedule, saving New York City about $152 million in interest payments. Prior to the loan pay-off, TSASC had made eight timely payments of interest and one of principal.

Innovations

This project introduced to transportation finance the structure of scheduled and mandatory debt service. It was the first time such a structure was used for a transportation project and has since become a standard provision of many TIFIA loans that have uncertain revenues pledged, such as toll road revenue.

Related Links / Articles

NYCDOT Staten Island Ferry Information

Contacts

Not available

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