A US port is seeking federal support of US$1.9bn to cover revenue losses and expenses resulting from the “extraordinary challenge” presented by the coronavirus pandemic.
The Port Authority of New York and New Jersey (PANYNJ) has written to the congressional delegation of both states to stress that reductions in activity have significantly reduced the port authority’s revenues and it will require federal assistance so it can continue to operate.
“This is not a contained event where one can see and measure the physical damage,” said PANYNJ. “Here, the extent and duration of the pandemic is unclear, and the damage, beyond the tragic health outcomes for some, has enormous economic dangers.
“While the Port Authority continues to operate so that essential people and goods get where they need to go, we are facing precipitous drops in passenger and cargo volumes. Additionally, our tenants are requesting fiscal relief from rents and charges as their industries contract under the strain of this pandemic.”
PANYNJ said cargo volumes at its ports are forecasted to decrease by 30% in March as compared to March 2019 average weekday levels. Though it is hoping for some degree of recovery in April, it warned “without federal assistance we risk a terribly prolonged recovery”.
The port authority’s financing request is based on the scenario that the current level of reduction in activity continues for six-months followed by a partial recovery of activity levels thereafter.
The port authority’s facilities include the East Coast’s largest marine terminals and port system, which processes more than 7m TEUs of cargo each year.
